Major Economic Shift: Hermantown Approves Massive Data Center Campus Set to Transform Regional Landscape

Hermantown Embraces Digital Future with Landmark Data Center Approval

The Hermantown City Council has unanimously approved rezoning for a transformative data center campus that promises to bring significant economic development to northeastern Minnesota. In a 4-0 vote this week, council members cleared the way for what could become one of the region’s largest technology infrastructure projects.

Hermantown Embraces Digital Future with Landmark Data Center Approval
Project Scale and Specifications
Fortune 50 Involvement and Community Impact
Regional Context and Industry Significance
Looking Ahead

This decision marks a pivotal moment for Hermantown, a community of approximately 10,000 residents located just outside Duluth. The approval signals the area’s emergence as a potential new hub for digital infrastructure in a state where data center development has traditionally concentrated around the Minneapolis metropolitan area.

Project Scale and Specifications

The proposed campus represents a substantial physical and financial commitment to the region. Planned for a 403-acre parcel near the Arrowhead Substation, the development would feature four identical buildings, each spanning 300,000 square feet – equivalent to approximately five American football fields per structure.

The property boundaries are defined by Morris Thomas Road to the north, Midway Road to the east, and Solway Road to the west. This strategic location provides both accessibility and the necessary infrastructure connections for a facility of this magnitude., according to emerging trends

Real estate firm Mortenson submitted the rezoning request under the codename “Project Loon,” though the development‘s official branding remains undisclosed. The $650 million project timeline suggests construction could commence in 2027, with full build-out anticipated over an eight to ten-year period.

Fortune 50 Involvement and Community Impact

While officials have confirmed involvement from a U.S.-based Fortune 50 company through affiliate Harmony Group LLC, the specific corporation remains unnamed. This secrecy is common in large-scale data center developments, where companies often maintain confidentiality during planning stages.

The project has already generated significant community interest, with more than 300 residents attending a six-hour meeting to discuss the proposal. The substantial turnout underscores both the project’s scale and the community’s engagement with development decisions that could shape the region’s future., as comprehensive coverage

Hermantown Mayor, speaking to local media, emphasized the balanced approach the council took in considering the project’s impact. “We’re looking at this as an opportunity for sustainable growth that respects our community’s character while embracing economic development,” he noted.

Regional Context and Industry Significance

This development represents a notable geographic expansion for Minnesota’s data center industry. While the state hosts several significant facilities, most cluster around the Twin Cities metropolitan area. Meta currently maintains operations in the state, and Amazon Web Services had previously considered Minnesota for a data center before withdrawing plans earlier this year.

The Hermantown approval suggests that secondary markets with adequate power infrastructure and development-friendly policies are becoming increasingly attractive to major technology companies. The proximity to the Arrowhead Substation provides crucial power access, while the available land offers expansion potential uncommon in more developed data center markets.

Economic development officials see this project as potentially catalyzing further technology investment in northeastern Minnesota. “When a Fortune 50 company makes this level of commitment, it signals to other businesses that the region has the assets and workforce to support significant technology infrastructure,” commented a regional economic development director.

Looking Ahead

As the project moves toward its anticipated 2027 start date, several milestones remain. Additional permits, environmental reviews, and infrastructure planning will need completion before construction can begin. The extended development timeline reflects both the project’s scale and the careful planning required for such a substantial addition to the region’s industrial base.

For Hermantown residents, the coming years will bring continued discussion about how this transformation aligns with community values and growth objectives. The unanimous council vote suggests strong initial support, but the project’s long-term success will depend on ongoing dialogue between developers, officials, and the community they serve.

For more detailed coverage of the council meeting and community response, the Duluth News Tribune provides extensive local reporting on the project’s reception and implications.