Major Data Center Expansion Set for Minnesota’s Northland with Fortune 50 Backing

Strategic Rezoning Paves Way for Major Tech Infrastructure

Hermantown, Minnesota is poised to become the site of a significant data center development following unanimous approval from the city council. The 4-0 vote to rezone a 403-acre parcel clears the path for what could become one of northern Minnesota’s largest technology infrastructure projects.

Strategic Rezoning Paves Way for Major Tech Infrastructure
Project Details and Timeline
Community Impact and Response
Regional Significance

The development, reportedly known as Project Loon, will feature four massive buildings totaling 1.2 million square feet of data center space. Located near the Arrowhead Substation, the strategic positioning provides critical access to power infrastructure essential for data center operations.

Project Details and Timeline

Real estate firm Mortenson submitted the rezoning request on behalf of Harmony Group LLC, which is acting as the development affiliate for an unnamed Fortune 50 company. The $650 million project represents one of the largest private investments in recent northeastern Minnesota history.

Construction is anticipated to begin in 2027, with the full build-out expected to take eight to ten years. The phased approach allows for gradual infrastructure development and community adaptation to the new industrial presence.

Community Impact and Response

The project has generated significant local interest, with more than 300 residents attending a recent six-hour meeting to discuss the proposal. The development‘s location in Hermantown, a suburb of Duluth, marks a departure from Minnesota’s traditional data center concentration around the Minneapolis metropolitan area.

This expansion into northern Minnesota reflects growing trends in data center placement, where companies are seeking locations with reliable power infrastructure, available land, and potential economic development incentives.

Regional Significance

While Minnesota has attracted major tech companies like Meta for data center development, and Amazon Web Services had previously considered the state before withdrawing plans, the Hermantown project represents a strategic move into a region not traditionally known for data center activity.

The development could signal a new era of technological investment in Minnesota’s Northland region, potentially creating construction jobs, increasing local tax base, and attracting additional technology-related businesses to the area.

The city of Hermantown has made project information available to help keep residents informed about the development process as it moves forward.

References

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