After a brief public hearing Tuesday, the Sherburne County Board approved a 20-year tax abatement for Google to build a data center in the Becker Industrial Park.
Before the decision, Assistant Administrator Dan Weber gave some background about the project and how it will affect the local economy. He said when Sherco coal units 1 and 2 close in 2023 and 2026, it will result in the loss of 150 direct and 250 indirect and induced jobs in the area and the loss of over $200 million annually for the regional economy.
“We have been working with Xcel and the City of Becker to try to make some investment in the Becker Business Park,” he said.
The proposed project consists of constructing a 375,000 sq. ft. data center on approximately 315 acres in the Becker business park, on excess land Google would purchase from Xcel. The site is located just north of Snuffy’s Landing and west of the Sherco Plant.
The total capital investment for the proposed project is $600 million, which includes $300 million in construction investment and $300 million in equipment purchases.
The project would increase the existing annual property taxes by approximately $1,365,000. The county portion would be approximately $390,000 per year.
The project would create a minimum 50 local full-time jobs with a total expected compensation of $4 million.
DEED estimates the creation of an additional 110 jobs throughout Sherburne County, with a resulting increase in the area annual labor income of approximately $6.1 million, or $122 million over 20 years.
It will create about 2,300 jobs during a two-year construction phase and put an additional $7.5 million into the local economy annually once the project is completed.
“In addition to the economic benefits, it will bring needed road, sewer, water and fiber infrastructure to the county,” said Weber. “It will also raise the county’s and state’s profile in the data center market. We feel this project will be a catalyst to attract other investment in the area.”
The project will pay school taxes and $320,000 in local option sales tax during construction phase.
Based on the one facility planned for, the abatement would be approximately $390,000 per year, or $7.8 million over 20 years. The return to the county on that $390,000 annual investment would be over $7.5 million per year in economic impact for the county from the direct, indirect and induced jobs. The total return would reach $350 million when including the impact from the construction phase, said Weber.
Before the commissioners voted, a number of local officials and business members spoke in favor of the project and asked the board to approve the abatement.
“It would not only provide an immediate boost to the local economy, it would showcase our communities within Sherburne County and the State of Minnesota,” said Becker Mayor Tracy Bertram. “We believe the proposed project would have a positive impact and a lasting benefit to our local economy.”
