The Hermantown City Council unanimously approved Google's proposed 1.7-million-square-foot data center late Friday, October 30, clearing the main local hurdle for a campus on more than 200 acres just outside Duluth, Minnesota. The vote came after Google dropped its request for up to $80 million in property tax breaks.
The council voted 5-0 on six measures. They include a special use permit, a development agreement with Google, a cooperative agreement with St. Louis County, and a plan to decommission the site if the data center is never completed or is abandoned. The council also rejected a citizen petition seeking an environmental assessment worksheet.
Without the tax break, the Google project is now expected to generate about $3 million a year in property tax revenue for the city. Google also agreed to monitor private wells near the development, and the plan was scaled back from four buildings to three, with height capped at 33 feet. Each building would still be larger than six football fields.
Key facts
- 01Hermantown's City Council approved six measures for Google's 1.7-million-square-foot data center 5-0 late on Friday, October 30, 2026.
- 02Google dropped a request for up to $80 million in property tax breaks; the project is now expected to pay about $3 million a year in property taxes.
- 03The plan was cut from four buildings to three, with height capped at 33 feet, on more than 200 acres outside Duluth.
- 04The facility is expected to need 500 megawatts, and the Minnesota Public Utilities Commission must still approve its Minnesota Power service deal.
- 05Three lawsuits challenging the environmental review, zoning change and land ownership status remain pending.
The revised site plan calls for three 375,000-square-foot data buildings, three 150,000-square-foot mechanical buildings, two office buildings and a fire suppression building. Hermantown resident Eric Palmer, who backed the project, said a $210 million decommissioning agreement protects the city if the project is scrapped.
“This agreement demonstrates to me personally that Google wants to be a responsible and good neighbor”— Eric Palmer, Hermantown resident
Power is the next gate. The facility is expected to need 500 megawatts, roughly the combined electricity use of homes in Minneapolis, St. Paul, Duluth and Rochester, according to the Citizens Utility Board of Minnesota. The Minnesota Public Utilities Commission must still approve an electric service agreement between Google and Minnesota Power.
Representatives of Google and Minnesota Power joined about an hour of council discussion, followed by roughly four hours of public comment that ended just before midnight. Most speakers opposed the project, citing water use, environmental impact and effects on nearby residents. Attendance was capped at 85 people after protests forced the council to postpone a vote originally set for Monday.
Supporters pointed to how much the project changed during negotiations. Dave Lislegard, executive director of Jobs for Minnesotans, told the council the final agreements reflected that public input.
“There has been input, and Google has listened, you have listened, and this project has changed”— Dave Lislegard, Executive director of Jobs for Minnesotans
Councilmember John Geissler framed the decision in local terms. "What we've done tonight is not about AI. It's not about big tech. It's not about software," he said.
Three lawsuits are pending, challenging the environmental review, the zoning change process and the land's ownership status. City attorney Christopher Virta told the council, "None of these issues prevent the council from moving forward with tonight's agenda."
Google also has a second Minnesota project under review. A separate Google data center near Pine Island must undergo a more robust state environmental review after a lawsuit settlement.
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