HERMANTOWN — Google has lifted the veil of secrecy that shrouded a controversial proposal to build a massive data center in the rural southwest corner of this city.
The firm took public ownership of the project for the first time Tuesday morning, issuing a statement.
“We are excited to announce plans for a new data center in Hermantown, marking the beginning of a partnership rooted in sustainable innovation and long-term investment,” said Kate Franko, Google’s regional head of data center public affairs.
“We are eager to put down roots here,” she said. “Hermantown is a natural fit for this project, offering a climate that supports energy-efficient air cooling, a resilient power grid, and a dedicated and motivated workforce. Our goal is to be a long-term partner that strengthens the local economy and contributes to the community’s lasting success.”
Minnesota Power confirmed it has agreed to the terms of a likely electric service agreement with the global technology giant to meet the energy needs of the proposed Hermantown facility. The agreement will now be submitted to the Minnesota Public Utilities Commission for its review and possible approval later this month.
Some critics of the data center, which could reach up to 1.8 million square feet in size, have raised concerns that it may drive up local electric rates.
But those fears are unwarranted, according to Jennifer Cady, Minnesota Power’s vice president of external affairs.
“We can serve this new Google facility without harming other customers,” she told the News Tribune, pointing to recent state legislation that expressly forbids any cost shifting to accommodate data centers.
To meet the needs of Google, however, Minnesota Power will need to boost its capacity.
Toward that end, it coupled the announcement of a Google service agreement with news that the project will fuel “the development of 700 megawatts of new clean-energy resources without increasing costs to (other) customers.”
Minnesota Power said the partnership with Google will enable it to invest in the development of 300 megawatts of wind energy plus 400 megawatts of battery storage capacity.
To put 700 megawatts into perspective, that represents just over one-third of the power company’s current total 2,000-megawatt capacity.
Yet plans for Google’s proposed Northland project remain on hold for now, in the face of a legal challenge mounted by a group of concerned citizens who organized a group called Stop the Hermantown Data Center. In addition to service impacts, opponents have also raised concerns about environmental degradation, as well as noise and light pollution.
Minnesota Power officials remain optimistic that the data center plans will ultimately be approved, however.
“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,” said Minnesota Power Chief Operating Officer Josh Skelton in a news release.
“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,” he said.
Smaller existing customers ultimately stand to benefit, according to Julie Pierce, Minnesota Power’s vice president of strategy and development.
“In a regulated environment, when you have more customers to spread your costs over, it helps and provides benefits to all customers,” she said.
Pierce noted recent downturns in the mining and forest products industries have led to operational strains.
“By having new customers come to the service territory, it helps us spread those costs over a much broader set of customers,” she said.
“We are very excited about the fact that we’ll have a new global industry coming to Northeastern Minnesota. And what they bring is a totally different business profile than some of the natural resource-based economy customers we currently have. So, it will be a stabilizer,” Pierce predicted.
Smaller existing customers ultimately stand to benefit, according to Julie Pierce, Minnesota Power’s vice president of strategy and development.
“In a regulated environment, when you have more customers to spread your costs over, it helps and provides benefits to all customers,” she said.
Pierce noted recent downturns in the mining and forest products industries have led to operational strains.
“By having new customers come to the service territory, it helps us spread those costs over a much broader set of customers,” she said.
“We are very excited about the fact that we’ll have a new global industry coming to Northeastern Minnesota. And what they bring is a totally different business profile than some of the natural resource-based economy customers we currently have. So, it will be a stabilizer,” Pierce predicted.
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