Google is behind proposed data center in Hermantown, city announces

HERMANTOWN — A proposed data center that has sparked months of controversy in Hermantown will be owned by Google.

The internet giant also signed an electric service agreement with Minnesota Power.

A Tuesday, March 3, news release from the city of Hermantown, stated Google chose the area for its “energy-efficient climate, highly-skilled local work force and Minnesota Power’s resilient power grid.”

The data center plans include converting a 400-acre marshy area next to Minnesota Power’s Arrowhead substation into a 1.8 million-square-foot campus with at least four buildings to house the data center’s servers.

“We are excited Google is choosing Hermantown, knowing the commitment they make will have a substantial positive impact,” stated Hermantown City Administrator John Mulder in the release. “Their desire to make a home here shows they are invested in the future of Hermantown and our greater region.”

The project, according to Hermantown’s project webpage, will not use a water system to cool its servers — a matter of great contention as the proposed data center has been scrutinized by residents and environmental groups.

The data center was put on hiatus in November 2025, when a developer associated with the project announced it would seek further public input before next steps. This came after the city of Hermantown received a petition demanding further environmental review. Harmony Group LLC, one of the associated developers, purchased several residential properties on Morris Thomas Road in January, paying between $1.5 million to $2.7 million for each, according to St. Louis County property records.

In a separate news release, Minnesota Power announced an agreement with Google to power the project. The collaboration will reportedly enable the development of 700 megawatts of new, clean energy resources, from 300 MW of wind energy and 400 MW of battery storage.

The agreement also includes a $5 million contribution from Google in energy impact funding to help bolster Minnesota Power’s energy affordability and efficiency programs. The data center is also slated to contribute millions of dollars each year to the statewide energy efficiency and weatherization program, as specified in the 2025 Minnesota data center energy law.

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City of Hermantown

“We’re excited to have a company with Google’s reputation for community investment and engagement choose our region for such a significant investment. Data centers present important economic and innovation opportunities for our region, including a growing tax base, job creation and industry diversification,” stated Minnesota Power Chief Operating Officer Josh Skelton.

“This agreement demonstrates how data centers can be brought onto the grid responsibly, with collaborative planning. As with any large customer, Google will cover the costs associated with the necessary energy infrastructure to meet its energy needs. The agreement enhances grid reliability and protects other customers. We’re proud to be the region’s premier power provider and supply the energy for this data center that will deliver economic benefits across our region.”

The electric service agreement will be under review by the Minnesota Public Utilities Commission later this month. Minnesota Power appeared before the PUC last month to discuss the topic of data centers. The PUC opted not to dive into the issue at the time because it was not the right case to have the discussion, but commissioners did note that any data center power agreements would have to go through them.

“You’re not just going to approve a data center until you bring something to us,” Commissioner John Tuma said.

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Stop the Hermantown Data Center via Facebook

The Minnesota Center for Environmental Advocacy is one of the groups that sued the city of Hermantown to demand further environmental review for the project.

"While it’s always positive to hear that clean energy is being discussed for a proposal, this announcement feels like an attempt to gloss over what has so far been a very poor public process,” reads a statement from the MCEA. “Whatever the company’s plans are, they must undergo a robust environmental review as required by law so the public has an opportunity to understand what's being proposed and the potential environmental impacts. That's a vital piece of the process that continues to be missing."

Reporting by the Minnesota Star Tribune found that several Hermantown officials signed non-disclosure agreements as a data center was being considered, as the city accepted public comment on an alternate urban areawide review, or AUAR, that proposed “light industrial development” on the site.

The Hermantown Chamber of Commerce expressed excitement for the Google announcement.

“We hoped for a partner with a proven track record, strong infrastructure standards, and the capacity to answer public questions clearly and responsibly,” stated Chamber President Kimberly Parmeter in a news release. “This company is already a part of our life, now it can be part of our local economy, bringing jobs and enhancing infrastructure. That means great possibilities not just our community, but the entire Northland moving forward.”