MINNEAPOLIMEDIA NEWS | Hermantown Approves Google's Massive Data Center Despite Public Opposition, Pending Lawsuits and Questions Over Electricity Demand

Hermantown officials approved key agreements for a proposed Google data center after hours of public opposition, but lawsuits and state utility approval remain unresolved.

HERMANTOWN, MN (November 1, 2026).

A controversial Google data center proposed for a rural area outside Duluth has cleared its most significant local government hurdle after the Hermantown City Council unanimously approved a series of agreements Friday night, ending a turbulent week of postponed meetings, public protests and escalating concerns about the project's environmental and community impact.

The council's decision followed approximately four hours of public testimony and another hour of deliberations. The meeting concluded shortly before midnight, with officials approving a development agreement, a special use permit and provisions addressing what would happen if the facility were abandoned or never completed.

The decision moves forward one of Minnesota's largest proposed data center developments, although it does not authorize immediate construction or resolve several legal and regulatory disputes.

Google's proposal involves a complex of approximately 1.7 million square feet on more than 200 acres in Hermantown. The site is located in an area containing residential properties, forests and wetlands, raising concerns among residents about land-use compatibility, environmental protections and the long-term transformation of the community.

The project has generated sustained opposition from residents who argue that its potential effects extend beyond the boundaries of the development site.

Those concerns include electricity demand, private wells, changes to the surrounding landscape and the degree to which local officials have incorporated public objections into their decisions.

The council's Friday vote followed two unsuccessful attempts to hold the meeting earlier in the week. A Monday meeting was disrupted by prolonged chanting and demonstrations, and the rescheduled Tuesday session was postponed again.

When the council reconvened Friday, attendance was limited to 85 people, with a virtual viewing option and an opportunity to submit comments by email.

The restrictions became another source of controversy.

Opponents argued that a decision involving a project of such scale deserved a meeting space capable of accommodating more residents. Some participants said the attendance limit forced community members to remain outside while officials considered decisions that could affect their neighborhoods for decades.

The dispute over public access became part of a larger disagreement about what constitutes meaningful community participation in development decisions.

Supporters of the project, meanwhile, emphasized the potential economic benefits.

Google has withdrawn an earlier request for as much as $80 million in property tax assistance. Under the revised arrangement, the development is expected to generate approximately $3 million annually in property tax revenue for Hermantown.

Supporters argue that the additional revenue could strengthen the city's financial position and reduce pressure on existing taxpayers.

The project also includes a decommissioning agreement valued at approximately $210 million, intended to address the future removal or restoration of the facility if operations cease.

That provision is particularly significant for a development whose buildings, utility infrastructure and physical footprint would be difficult to repurpose for ordinary commercial or residential use.

Google has made additional modifications during the review process.

The company reduced the proposed number of buildings from four to three, established a building-height limit of 33 feet and agreed to monitor private wells near the development.

Supporters described those changes as evidence that the company had responded to community concerns.

Opponents argued that the modifications did not adequately address the fundamental question of whether a large data center belongs in the proposed location.

The facility's electricity requirements remain among the most consequential unresolved issues.

The project is expected to require approximately 500 megawatts of power, a demand substantial enough to raise broader questions about Minnesota's electrical infrastructure, generation capacity and the allocation of future energy costs.

The Minnesota Public Utilities Commission must still review an electric service agreement involving Google and Minnesota Power.

That proceeding is separate from the city's land-use approvals and will involve questions beyond the Hermantown City Council's immediate jurisdiction.

Legal challenges also remain.

Three pending lawsuits concern the project's environmental review, the city's process for modifying zoning requirements and questions about ownership of land within the proposed development area.

The existence of those lawsuits does not establish that the approvals were unlawful, but it means important disputes remain unresolved even after the council's vote.

The project also requires other approvals, including a wetland permit.

Hermantown's decision arrives as Minnesota communities increasingly confront proposals for large computing facilities associated with expanding demand for digital infrastructure and artificial intelligence services.

A separate Google data center proposal near Pine Island has also encountered opposition and is now subject to a more extensive state-supervised environmental review following litigation.

Together, the projects illustrate the growing challenge facing Minnesota policymakers.

Data centers may produce tax revenue and construction employment, but their enormous energy requirements and potential effects on land, water and local infrastructure create questions that extend beyond conventional economic development considerations.

The debate also raises questions about who receives the benefits and who bears the costs.

For Hermantown, the immediate political decision has been made. The City Council has approved the principal local agreements, and supporters can point to anticipated tax revenue and negotiated protections.

Residents who oppose the development, however, continue to question the location, scale and review process.

The project's ultimate future will depend on the remaining regulatory proceedings, legal challenges and the developer's ability to satisfy outstanding requirements.

Friday's vote therefore marks an important advance for Google, but not the end of the dispute.

The next stage will test whether the promises made during the approval process translate into enforceable protections for the community and whether the project can proceed under Minnesota's environmental and utility requirements.

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