The Minnesota city of Hermantown is pausing a vote on a proposed data center amid prolonged public debate and as pushback grows against such developments, a local company feels it can be done without harming communities.

Controversial tax breaks and environmental impacts are main concerns, as tech giants continue building massive facilities across the country to process artificial intelligence data and other digital information.

Elsewhere in Minnesota, clean energy developer Geronimo Power is pitching a data center in Nobles County.

Drew Terwilliger, executive vice president of strategy and commercial for the company, said they mean it when they tout transparency.

"We don't do NDAs with any local officials. Haven't done them, won't do them," Terwilliger stressed. "We're coming out front and telling you what it is."

He is referring to nondisclosure agreements, which also have come under scrutiny. Residents say elected officials use them to keep controversial projects secret. Geronimo's project would also be powered by a mix of wind, solar and energy storage, shielding ratepayers from added costs. Despite the arguments, the Nobles County Board rejected a zoning change tied to the project.

As Geronimo assesses its next steps, Terwilliger emphasized the company will hear communities out and craft plans that work for surrounding towns. He acknowledged the perception of larger corporations descending on smaller populated areas but said his company was founded by a Minnesota farmer and local perspective is embedded in its mission.

"It's not like working with 'XYZ Chemical Corp.,' who might not care too much about locals," Terwilliger underscored. "We're coming through with kind of community-first approaches, charitable giving, giving back, treating the local communities well."

Larger tech firms make similar promises but Geronimo's pitch includes direct payments totaling $10 million to residents living within two miles of the Nobles County site. The company said it is in addition to other perks, which can diversify rural economies.

Some economists have warned about a data center bust but Terwilliger explained their models are carefully crafted for communities to withstand such a scenario, and he feels the demand will not go away.

"More and more computer code is getting written by AI and it's coming," Terwilliger added.

Source: Public News Service