Google’s announcement that they won’t seek a tax abatement for a proposed data center in the City of Hermantown is drawing mixed reactions from communities in Minnesota. While the Hermantown project has often been in the statewide spotlight, dozens of other Minnesota communities are in various stages of planning, proposing, or building a data center nearby.
In Hermantown’s case, the abatement was initially approved by the city to offer Google an incentive to build in the area. Without the abatement, the project stands to generate up to $240 million in regional property taxes.
“The $120 million that the county would collect over 20 years as a result of this project is significant compared to the alternative of having tax breaks as a part of the project,” said Chad Ronchetti, Economic Development Director for the City of Hermantown.
Hermantown is not the only community to approve a tax abatement for a planned Google data center; in February, the City of Pine Island approved an abatement worth roughly $36.5 million.
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