♪ >> ERIC: GOOGLE ANNOUNCED THIS MONTH THAT IT'S BEHIND A $650 MILLION HYPERSCALE DATA CENTER PROPOSAL IN HERMANTOWN.

THE NEWS COMES AFTER MONTHS OF INTENSE SPECULATION AND GROWING OPPOSITION FROM LOCAL RESIDENTS WHO WERE KEPT IN THE DARK.

REPORTER KAOMI LEE LOOKS AT THE SECRECY OVER “PROJECT LOON” AND WHY IT’S SPARKING BIPARTISAN SUPPORT AT THE CAPITOL FOR MORE TRANSPARENCY IN DATA CENTERS.

>> ADOLF IS A SMALL RURAL PART OF HERMANTOWN DOTTED WITH FARMS AND HOMES.

BUT OVER THE LAST FEW MONTHS, IT'S BECOME THE FOCUS OF MUCH DEBATE.

UNTIL A FEW MONTHS AGO, FEW YOU KNEW THAT A PROPOSAL FOR A HYPERSCALE DATA CENTER WAS SECRETLY IN THE WORKS.

AND WHAT ABOUT THAT PROPERTY IN HERMANTOWN, IS THAT GOING TO BE A DATA CENTER?

>> I DON'T KNOW WHAT THAT'S GOING TO BE.

THAT'S NOT A MINNESOTA POWER PROJECT.

>> JENNIFER KATIE SPOKE TO "ALMANAC" DURING ACQUISITION HEARINGS OF HER COMPANY, A SUBSIDIARY OF BLACK ROCK AND A CANADIAN PREVENTION PLAN EVENTUALLY ACQUIRED THE UTILITY FOR MORE THAN $6 BILLION.

IN COURT FILINGS, MINNESOTA'S PARENT COMPANY STATED IT DID NOT HAVE ANY SPECIFIC PLANS RELATED TO DATA CENTERS.

FIVE MONTHS AFTER THE ACQUISITION, MINNESOTA POWER ANNOUNCED A NEW SERVICE AGREEMENT WITH TECH GIANT GOOGLE FOR A MASSIVE DATA CENTER.

IT'S PLANNED FOR A 400-ACRE SITE NEXT TO THE UTILITY SUBSTATION IN A RURAL PART OF HERMANTOWN.

A SPOKESPERSON SAYS IT WASN'T MINNESOTA POWER'S STORY TO TELL.

>> WE ARE NOT THE DEVELOPER OF THE DATA CENTER.

WE ARE NOT AN INVESTOR IN THE DATA CENTER.

AND WE ARE CERTAINLY NOT THE PLANNER FOR THIS PROJECT.

AND, SO, IT REALLY WOULD NOT BE OUR ROLE TO GET OUT IN FRONT OF A DEVELOPER.

>> MINNESOTA POWER ALSO SIGNED A NONDISCLOSURE AGREEMENT, OR NDA, WITH GOOGLE.

AND THEY WEREN'T THE ONLY ONES.

>> WAS ONE OF TWO STAFF MEMBERS AT THE CITY OF HERMANTOWN WHO SIGNED AN NDA.

>> JOE WICKLUND IS HERMANTOWN'S ASSISTANT CITY ADMINISTRATOR.

THE OTHER WAS -- >> JOHN MULDER, OUR CITY ADMINISTRATOR.

>> SO DID THREE St.

LOUIS COUNTY COMMISSIONERS.

HERMANTOWN STAFF SAY NDAs ARE COMMON PRACTICE WHEN WORKING WITH PROSPECTIVE BUSINESSES.

>> NO MATTER WHAT THE SIZE, SCALE, END USE IS, WE NEED TO PROVIDE THE CONFIDENTIALITY TO ANYONE THAT ENGAGES WITH CITY HALL.

>> IN OFFICIAL CITY DOCUMENTS, THE DATA CENTER WAS REFERRED TO ONLY AS A COMMUNICATION SERVICES FACILITY.

THE CITY WENT AHEAD AND CONDUCTED AN ENVIRONMENTAL REVIEW OF THE PROPOSED SITE WITHOUT SPECIFYING IT WAS FOR A DATA CENTER.

IT ALSO CHANGED ITS 2045 COMPREHENSIVE PLAN.

RESIDENTS WHO HAD WORKED ON THE PLAN FOR 18 MONTHS WERE SHOCKED TO FIND OUT A RURAL PART OF THE CITY SUDDENLY INCLUDED AN URBAN SERVICES AREA.

>> SOMEBODY AT THE CITY, I MEAN, THEY JUST DECIDED WE'RE GOING TO INSERT THIS INTO THE PLAN.

NEVER ENGAGED ANY OF US AS A STEERING COMMITTEE.

THEY SENT OUT AN EMAIL MESSAGE FOR TWO YEARS SAYING, WOULD YOU PLEASE COME HELP US WITH THIS PLAN.

WHEN THE PLAN'S DONE, THEY DIDN'T TELL US IT'S DONE.

>> CRITICS SAY NDAs ARE USED BY DEVELOPERS TO BLOCK THE PUBLIC FROM KNOWING ABOUT HE PROPOSALS UNTIL AFTER IT'S TOO LATE TO STOP THEM.

THEY SAY CONCERNS ABOUT LIGHT AND NOISE POLLUTION, ENVIRONMENTAL IMPACT, CONSTRUCTION, AND WATER USAGE DON'T GET THE PUBLIC VETTING THEY REQUIRE.

REPUBLICAN STATE SENATOR STEVE DRAZKOWSKI SAYS HE FIRST BECAME CONCERNED AFTER HE LEARNED ABOUT A DATA CENTER PROPOSAL IN FARMINGTON.

>> PEOPLE IN THE GOVERNMENT IN FARMINGTON HAD SIGNED THESE NONDISCLOSURE AGREEMENTS, WHICH BASICALLY BINDS THEM TO BE SECRET.

TO NOT TELL ANYTHING ABOUT WHAT THEY LEARNED ABOUT THE PROPOSAL.

OR THEY COULD BE SUED.

>> BILLS AGAINST NDAs ARE GETTING TRACTION AT THE CAPITOL.

DRAZKOWSKI FOUND AN UNLIKELY CO-AUTHOR IN DEMOCRATIC STATE SENATOR ERIN MAYE QUADE.

>> ON A LOT OF THINGS, ON THE SIZE OF GOVERNMENT, A LOT OF SOCIAL ISSUES, OTHERS, WE'RE ON COMPLETE OPPOSITE ENDS.

>> A SENATE BILL WOULD REQUIRE MORE TRANSPARENCY AND PUBLIC INPUT ON DATA CENTER DEVELOPMENT.

ANOTHER WOULD BAN MUNICIPALITIES FROM SIGNING NDAs FOR DEVELOPMENT PROJECTS THAT NEED PUBLIC FUNDING.

A BIPARTISAN COMPANION BILL MOVED OUT OF THE TIED HOUSE COMMITTEE LAST WEEK ON A UNANIMOUS VOTE.

IN THE SENATE, THE TWO AUTHORS ALIGNED LAST SESSION ON A SIMILAR BILL.

>> WHAT ENDED UP IN THE DISCUSSION, AS YOU GO AND VIEW IT, IS THAT WE ENDED UP WITH BIPARTISAN OPPOSITION AND BIPARTISAN SUPPORT FOR THIS.

ENDED UP IN A TIE.

>> THERE MIGHT HAVE BEEN ONE OTHER BILL, MAYBE.

>> STATE SENATOR ERIN MAYE QUADE, ACKNOWLEDGED THE NOTABLE BIPARTISAN ON ND As BETWEEN A CONSERVATIVE AND A LIBERAL.

MAYE QUADE REPRESENTS ROSEMOUNT WHERE MET A IS DEVELOPING THE STATE'S FIRST HYPERSCALE DATA CENTER.

>> IT WAS DEVELOPED UNDER A CODE NAME, BIG FOOT, NONE OF THE RESIDENTS HAD AN IDEA THIS WAS HAPPENING, SOME OF CITY COUNCIL MEMBERS DIDN'T KNOW IT WAS HAPPENING UNTIL AFTER THE PROJECT WAS ANNOUNCED BECAUSE OF NDAs.

>> BILL OPPONENTS FROM STATE AND LOCAL GOVERNMENT SIGNALED FUTURE DEBATES ON THE FLOOR.

>> WE'RE NEVER GOING TO GET LEGISLATION THAT IS GOING TO BE EFFECTIVE THAT WILL KEEP MINNESOTA SAFE, WATER CLEAN, ENERGY, IMPACT ON OUR GRID, BY ONE SIZE FITS ALL OR AN ATTACK ON A BUSINESS BECAUSE WE DON'T LIKE IT TODAY.

>> BUSINESS-FORWARD GROUPS SAY THERE SHOULD BE A BALANCE BETWEEN TRANSPARENCY AND TRADE SECRET INFORMATION.

>> IT CAN BE AN INTEND UNINTENDED CONSEQUENCE, FOR EXAMPLE, WHERE IF INFORMATION GETS OUT THAT IT MAKES NEGOTIATIONS MUCH MORE DIFFICULT.

IT CAN SLOW SIGNIFICANTLY TIMELINES AND ULTIMATELY WHAT WE DON'T WANT TO DO IS JEOPARDIZE THESE BIG PROJECTS IN THE -- AND PRATT PECTS.

>> GOOGLE HAS ANOTHER CONTESTED PROPOSAL IN PINE ISLAND.

MORE THAN A DOZEN DATA CENTERS ARE BEING PROPOSED IN THE STATE.

THE MINNESOTA CENTER FOR ENVIRONMENTAL ADVOCACY HAS SUED MANY OF THE PROJECTS.

IT SAYS GOOGLE'S PROPOSALS HAVE NOT BEEN ANY DIFFERENT IN THEIR SECRECY.

>> IN MINNESOTA, WE HAVE THIS REQUIREMENT THAT BIG PROJECTS LIKE A DATA CENTER HAVE TO GO THROUGH WHAT IS CALLED AN ENVIRONMENTAL REVIEW PROCESS, AND THAT'S MEANT TO BE A LOOK BEFORE YOU LEAP.

KNOW THE IMPACT BEFORE YOU'RE MAKING, YOU KNOW, KEY DECISIONS THAT ARE GOING TO ALLOW CONSTRUCTION TO BEGIN, A PROJECT TO GO FORWARD.

>> GOOGLE DECLINED AN ON-CAMERA INTERVIEW AND ANSWERED NO SUBSEQUENT QUESTIONS.

IN AN EMAIL ANNOUNCEMENT, THE TRILLION-DOLLAR COMPANY SAID IT WAS, QUOTE, EAGER TO PUT DOWN ROOTS AND LOOK FORWARD TO COLLABORATING WITH LOCAL LEADERS.

THE PROPOSAL INCLUDES BRINGING CITY SEWER AND WATER LINES OUT TO THE AREA ON GOOGLE'S DIME.

BUSINESS LEADERS SAY THAT WOULD BE A HUGE BENEFIT.

>> WE COULD VERY FEASIBLY SEE IN THAT CORRIDOR, THOSE ADJACENT AREAS, THE OPPORTUNITIES FOR DEVELOPERS NOW TO COME IN AND WANT TO BUILD MULTIUNIT HOUSING OR MAYBE START ANOTHER COMMUNITY OF HOMES OR ADDITIONAL SHOPPING AND RETAIL SPACE OUT THERE.

>> BUT A GRASSROOTS COMMUNITY GROUP IN HERMANTOWN IS FIGHTING TO KEEP THE FORESTED AND RURAL NATURE OF THEIR NEIGHBORHOOD.

>> MY SPOUSE AND I MOVED HERE TEN YEARS AGO.

WE SPECIFICALLY LOOKED FOR A RURAL RESIDENTIAL LOCATION IN WHICH TO SORT OF RELOCATE OUR FAMILY.

>> GILBERTSON SHOWS ME A CREEK THAT FLOWS INTO THE MIDWAY RIVER NEAR THE PROPOSED SITE.

SHE SAYS THE DATA CENTER HAS PUT CHRONIC STRESS ON TO RESIDENTS OVER THE LAST FIVE MONTHS.

>> THE PUBLIC DIDN'T ASK FOR THIS FIGHT.

AND I WOULD JUST APPEAL TO THE HERO WHO WOULD HELP