Google drops request for tax relief from Hermantown data center proposal

HERMANTOWN — Google will no longer pursue tax abatement for its proposed data center in Hermantown.

In a statement Wednesday, Oct. 14, staff with the city stated the project would generate over $240 million in property taxes over the next 20 years if approved.

This includes nearly $90 million for the city of Hermantown and $120 million for St. Louis County.

Megan Buffington

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KAXE

The company’s decision comes after the decision to grant tax abatement drew public scrutiny. Hermantown previously granted the company tax abatements over a 28-year period, returning 85% of taxes paid after keeping the first $100,000 to a total cap of $80 million.

Plans for the Google data center were largely unknown to the public until a data request revealed the extent of the project in September 2025, prompting several ongoing lawsuits. Google’s involvement in the project was kept under wraps until March 2026.

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In a statement, City Administrator John Mulder called the move a “win-win scenario” for the community and the company.

“Beyond the project itself,” he stated, “we know Google continues to work toward having a positive impact in our community ... but it will no longer occur through a tax abatement agreement with the city.”

Contributed

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City of Hermantown

The city stated Google was also considering sizable financial contributions to Hermantown Community Schools but did not provide an amount.

The city will now turn its attention to Google’s request for a special use permit, which will be considered by the Hermantown Planning and Zoning Board on Tuesday, Oct. 20.

The City Council will have a special meeting to consider the request and other agreements related to the data center at 6:30 p.m. on Oct. 26.