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Google sweetens the deal for proposed Hermantown data center

Google would fund about $130 million in infrastructure and provide up to $40 million for local schools in exchange for tax relief.

  • On Thursday, a draft development agreement and tax abatement plan revealed Google's proposal to build a 1.2-million-square-foot data center in Hermantown's southwest corner, outlining how both parties stand to benefit.
  • To support the facility, Google proposes funding approximately $130 million in road, water, and sewer improvements, with Hermantown City Administrator John Mulder noting the city would assume ownership upon successful completion.
  • The four-phase development requires an initial $650 million investment and will create at least 120 full-time positions paying at least 20% more than the average county wage, as determined by the U.S. Bureau of Labor Statistics.
  • Independent School District 700 stands to receive about $40 million over the 28-year agreement, while Hermantown expects to collect approximately $4.5 million in tax revenue from the development.
  • Concerned citizens have organized to challenge the project at city hall and in the courts, even as Chad Ronchetti, Hermantown's director of economic development, highlighted how utility construction could unlock future investment opportunities.
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Duluth News TribuneDuluth News Tribune
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Google sweetens the deal for proposed Hermantown data center

HERMANTOWN — A draft development agreement and tax abatement plan made public Thursday show how both Google and its would-be host potentially stand to benefit from the company’s controversial plans to build up to a 1.2-million-square-foot data center in the southwest corner of Hermantown. As the project continues to undergo renewed environmental review, the proposed agreements provide additional insight into what Google is willing to offer resid…

·Cherokee County, United States
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Duluth News Tribune broke the news in Cherokee County, United States on Friday, April 24, 2026.
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