PINE ISLAND, Minn. — Welcome to the neighborhood, Google.

The tech giant behind the most used search engine in the world — plus Google Maps and a suite of online applications including Gmail — will build a data center in Pine Island, with construction expected to begin before the end of 2026, according Peter Fitzgerald, vice president of Real Estate Development for Minneapolis-based Ryan Companies US Inc.

Ryan Companies is the developer behind Project Skyway, a 482-acre technology park that will be built on the north end of Pine Island.

In a press release announcing the deal, the city of Pine Island stated, “The development represents a significant investment in the City and schools, including over $20 million in Google and developer-funded infrastructure upgrades.”

Fitzgerald said the Google data center will bring 100 permanent full-time jobs to the city as well as roughly 500 long-term skilled trades jobs during the construction phase.

As the first tenant for Project Skyway, Google will construct a data center of approximately 250,000 square feet in size with a 35,000-square-foot office building on roughly 88 acres. The project will include 18 acres of stormwater management plus greenspace with pollinator plantings, Fitzgerald said.

“Google’s investment in Pine Island will be transformational for our city and reflects confidence in our community, and our future,” said Pine Island Mayor David Friese.

Friese said the city council has worked to attract business and grow the city’s tax base while also adding high-paying jobs. This development achieves those goals.

“Pine Island has positioned itself for continued growth as a great place to live and work and moving forward for a strong future,” Friese said.

In addition to the infrastructure investment, Google also has agreed to spend $25 million over 20 years funding Pine Island Public Schools through its Panther Program education fund. The fund will provide the district with a new revenue stream that is predictable for two decades, and designed to expand STEM education, modernize classroom technology and create direct workforce pipelines for Pine Island students.

“The Panther Program includes Panther Pathways which will support STEM education and training programs to help students build skills aligned with future job market needs,” the statement read.

Pine Island Schools Superintendent Barry Schmidt said Panther Program, outlined by the development agreement approved by the City Council at a special meeting on Feb. 4, is an example of how the city has partnered with the district to help the schools district meet its goals. He added that he looks forward to further collaboration with local businesses and Google.

“Together, we have the opportunity to inspire excellence by aligning responsible economic growth with educational innovation — expanding opportunities for students, strengthening our schools, and enhancing the long-term vitality of our entire community,” Schmidt said.

That Feb. 4 tax-incentive agreement would abate $36 million in property taxes over up to 28 years, but the city would still collect an estimated $131 million in new property taxes over the life of the abatement, and the developer would contribute annually to two separate funds — one for the city and one for Pine Island Public Schools — that would amount to roughly $27 million.

Kate Franko, regional head of Data Center Public Affairs for Google, said, “Pine Island offers a unique mix of community partnership and visionary leadership to support a project of this scale.”

Not everyone has been supportive of the potential data center development. At several town hall meetings and city council meetings over the past year, members of the public — mostly Pine Island residents — have questioned whether the environmental review was sufficient, whether a data center would create a nuisance for residential neighbors and if the tax incentives were too much.

The Minnesota Center for Environmental Advocacy filed a lawsuit on Oct. 16, claiming the alternative urban areawide review — the environmental review required by state statute and completed by the city in 2025 — did not go far enough. MCEA is asking the courts to require a more in-depth environmental impact statement.

A hearing requesting summary judgment is scheduled for April 6 in Goodhue County District Court.

One of the environmental issues brought forth is water usage. Data centers are often designed with water-cooled systems that require large amounts of water each year.

Google says it will build the Pine Island data center using advanced air-cooling technology, and will not be using water for cooling purposes.

“Water use will be limited to domestic needs and operations such as bathroom and kitchen facilities,” the statement read. The statement added that Google and Xcel Energy will partner to help ensure electricity in the area remains “affordable and reliable, while also supporting Minnesota’s clean energy goals.”

In a separate statement, Xcel Energy, which will provide power for the data center, said, as part of the electrical service agreement with Google, Google and Xcel will partner to bring 1,900 megawatts of new clean energy to the grid.

“Google is committed to maintaining affordability for ratepayers, strengthening grid infrastructure for the benefit of all users, and creating high-paying local jobs,” added Franko of Google. “We look forward to working with the City and local partners as we put roots down in Pine Island.”

Giving its support to the project, Xcel added, data centers are part of the information economy that people, communities and businesses use every day.

“Data centers are the backbone of the 21st century economy, and we’re excited to work with Google to advance the prosperity of our region and ensure our current customers benefit,” said Bria Shea, president of Xcel Energy–Minnesota, North Dakota and South Dakota. “This unique agreement is a model for data center partnerships in that it fulfills and protects Minnesota’s goals for a carbon-free future.”

Fitzgerald said Ryan Companies did not have a tenant identified when the company first approached Pine Island about developing the site. During the course of development, several light industrial and technology companies did approach Ryan about building at the site.

“Google’s commitment to be the first tenant within this business park is a clear endorsement of Ryan’s ambitious and successful vision,” Fitzgerald said, thanking city and community leaders for their support. “As a Minnesota-based company, this is a day to celebrate what is possible when companies like Ryan and communities like Pine Island work together to attract economic development and growth in a responsible way.”

Pine Island City Administrator Elizabeth Howard said the city hopes to see more development at the technology park within the coming years. The two-phased tax abatement deal indicate the city sees the technology park as a long-term asset to attract more technology and industrial businesses.

“When you look across rural Minnesota, communities are either growing or they are dying,” Howard said. “The city’s intention is to find businesses to help us grow.”

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