>> CATHY: HERMANTOWN OFFICIALS HOPE THEIR COMMUNITY IS THE NEXT TO SECURE A MASSIVE DATA CENTER THAT WOULD OUSE COMPUTER SERVERS.

THEY SAY A FORTUNE 50 COMPANY IN THEIR CITY WOULD SIGNIFICANTLY EXPAND THE TAX BASE AND ADD JOBS.

BUT A RESIDENT GROUP OPPOSES THE PLAN AND SAYS SECRECY OVER THE PROJECT AND ENVIRONMENTAL CONCERNS HAVE CREATED DEEP MISTRUST.

>> Kaomi: IS THIS WHERE YOU CROSS-COUNTRY SKI?

>> YEAH.

>> AND WE PICK WILD RASPBERRIES.

>> Kaomi: BOB AND KATHY HAVE LIVED ON THEIR RURALLER IT MAN TOWN HOME FOR 50 YEARS, THEY'VE PLANTED PINE TREES ON THEIR 50 ACRES TO ENJOY IN THEIR RETIREMENT.

NOW THEY'VE LEARNED A PROPOSED DATA CENTER COULD BE GOING UP 300 FEET AWAY.

>> THE DATA CENTER WILL BE ON THIS SIDE OF THE POWER LINES, YOU CAN SEE IT THERE.

>> Kaomi: IN JANUARY, THEY RECEIVED A NOTICE FROM MORTONSEN, A DEVELOPER IN MINNEAPOLIS.

>> IT STATED THAT THEY WERE INTERESTED IN PURCHASING OUR LAND FOR THE PURPOSE OF SITE SELECTION FOR AN INDUSTRIAL PROJECT IN HERMANTOWN.

>> THEY LEARNED THAT MORTENSON WAS THE DEVELOPER FOR META'S MASSIVE DATA CENTER IN ROSEMOUNT.

HE ASKED CITY OFFICIALS AND THE MAYOR FOR INFORMATION.

NO ONE REPLIED.

SO HE AND HIS WIFE CALLED MORTENSON.

>> FIRST THING WE SAID IS, WHAT IS THE PROJECT?

AND THEY SAID, WE CAN'T TELL YOU.

SO, I WAS PUT ON KIND OF THE DEFENSIVE.

>> Kaomi: NINE MONTHS LATER, ON OCTOBER 17th, THEY RECEIVED AN EMAIL THAT THEIR RURAL AND RESIDENTIAL CORNER OF HERMANTOWN WAS UP FOR REZONING, THE 200-ACRE ACRE CONTAINS FOREST LANDS AND WETLANDS, THREE DAYS LATER, RESIDENTS PACKED CITY HALL FOR THE VOTE.

>> WE WENT TO THE MEETING, IT WAS 51 OF US AGAINST IT.

MANY ASKED FOR A DELAY.

AND IT WAS 13 FOR T. AND WITHIN MINUTES AFTER EVERYBODY SPOKE, IT WAS UNANIMOUS.

APPROVED.

>> WHEN IT WAS FINALLY BROUGHT TO THE PUBLIC, YOU FELT LIKE ALL THE DEAL MAKING IT BEEN DONE.

>> Kaomi: IT WASN'T UNTIL A PUBLIC DATA REQUEST LAST MONTH THAT RESIDENTS LEARNED THE PROPOSED DEVELOPMENT WAS, IN FACT, A DATA CENTER.

THE SITE IS NEXT TO MINNESOTA POWER SUBSTATION.

EMAILS SHOW CITY OFFICIALS HAD BEEN IN TALKS WITH MORTENSON, D.E.E.D., AND MINNESOTA POWER ABOUT PROJECT LOON FOR MORE THAN A YEAR.

MINNESOTA POWER IS ALSO EXPANDING TO THE WEST.

MORTENSON DID NOT RESPOND TO MULTIPLE REQUESTS FOR COMMENT.

MINNESOTA POWER ALSO DECLINED COMMENT ABOUT PROJECT LOON, CITING A NONDISCLOSURE AGREEMENT.

>> WE FEEL THAT THIS HAS BEEN A DELIBERATE PROCESS BECAUSE THEY KNEW FROM THE BEGINNING, ALMOST TWO YEARS AGO, THAT THIS WAS GOING TO BE A DATA CENTER, AND TOOK EFFORTS TO OBSCURE THAT INFORMATION.

>> Kaomi: GUSTAFSON LIVES ON A SHEET FARM IN THE EARBY TOWNSHIP.

HE REPRESENTS GROUP OPPOSING THE PROJECT.

HERMANTOWN FINALIZED AN ENVIRONMENTAL REVIEW.

FOR 1.8 MILLION SQUARE FOOT INDUSTRIAL DEVELOPMENT NEAR HIS HOME.

THE CITY CONDUCTED AN ENVIRONMENTAL REVIEW CALLED AN ALTERNATIVE URBAN AIRWIDE REVIEW, OR AUAR, GUSTAFSON SAID THE REVIEW NEVER STUDIED A DATA CENTER.

>> WE FEEL THAT THERE'S MORE NEEDED WITH AN ENVIRONMENTAL REVIEW, AND THAT'S WHAT WE'RE ASKING FOR.

>> Kaomi: CITY OFFICIALS SAY CONFIDENTIALITY IS OFTEN REQUIRED IN THESE PROSPECTIVE DEALS.

JOE WICKLAND IS ASSISTANT CITY ADMINISTRATOR, HE SIGNED AN NDA WITH THE DEVELOPER.

>> THE REALITY IS, SO MUCH OF THIS IS ABOUT TIMING.

SO IF WE TALK ABOUT SOMETHING IN JUNE THAT ENDS UP NOT BEING THE REALITY IN SEPTEMBER WHEN IT COMES TIME FOR THAT, I WOULD HATE FOR SOMETHING THAT WOULD DERAIL THOSE COMMUNITY BENEFITS JUST BECAUSE IT ISN'T QUITE THE RIGHT TIME FOR IT TO BE PUBLICLY KNOWN.

>> Kaomi: THERE'S NOW AN FAQ PAGE FOR THE PROJECT.

THE CITY SAYS IT COULD BE HISTORY MAKING.

HERMANTOWN HAS A POPULATION OF 10,000 PEOPLE, AND IS JUST OUTSIDE DULUTH.

CHAD LEADS HERMANTOWN'S ECONOMIC DEVELOPMENT.

HE SAYS A FORTUNE 0 COMPANY AND UP TO A BILLION DOLLARS PER PHASE IN INVESTMENT IS AT STAKE.

>> THE PLAN IS TO BUILD ONE BUILDING INITIALLY AND WITH THAT BUILDING WILL COME, AT A MINIMUM, OF 40 JOBS.

UP TO FOUR DATA CENTER BUILDINGS.

IT'S DIFFICULT TO FORECAST HOW MANY JOBS, BUT IT'S EXPECTED THERE WILL BE 100 PLUS FULL-TIME POSITIONS IN THESE.

AND THESE ARE GOOD-PAYING JOBS.

>> Kaomi: BUT THERE'S UNCERTAINTY AROUND THEM, TOO.

>> ONE OF THE REALLY HARD PARTS OF PLANNING FOR DATA CENTERS IS HOW FAST THEY'RE COMING.

>> Kaomi: HE SAYS, DATA CENTERS AREN'T NEW, BUT HYPER SKILLED ONES ARE AND TEN TIMES LARGER.

TECH GIANTS ARE COMPETING AGAINST EACH OTHER TO WIN THE RACE IN AI AND CRYPTOMINING.

>> WE DON'T KNOW HOW EFFICIENT THESE DATA CENTERS CAN PERFORM IN THE LONG RUN.

BUT WE HAVE TO BUILD THE ELECTRICITY INFRASTRUCTURE AND THE WATER INFRASTRUCTURE AROUND THESE DATA CENTERS.

>> Kaomi: MORTENSON HAS HOW PAUSED THE PROJECT.

THE CITY IS FACING A CHALLENGE FROM THE CITIZENS GROUP AND THE MINNESOTA CENTER FOR ENVIRONMENTAL ADVOCACY.

THEY'VE ASKED THE STATE ENVIRONMENTAL QUALITY BOARD TO STEP IN.

AND THEY'RE ALSO SUING THE CITY AND THE DEVELOPER CALLED HARMONY GROUP, LCC, IN DISTRICT COURT.

>> THE REASON THAT WE'RE BRINGING THIS CHALLENGE IS BECAUSE THIS PROPOSAL HAS MOVED FORWARD WITH VERY LITTLE TRANSPARENCY OR PUBLIC ACCOUNTABILITY.

>> Kaomi: THE ULUTH MONITOR FOUND THAT 22 St.

LOUIS COUNTY EMPLOYEES, INCLUDING THREE ELECTED COMMISSIONERS, SIGNED NDAs WITH MORTENSON, SO DID WO HERMANTOWN CITY ADMINISTRATORS, MINNESOTA POWER, DULUTH'S FORMER CITY ADMINISTRATOR, AND THE HEAD OF THE YOU DULUTH ECONOMIC DEVELOPMENT AUTHORITY.

HOFFMAN SAYS, IT'S NOT POSSIBLE TO DO A GOOD AND TRANSPARENT ENVIRONMENTAL STUDY AND WITHHOLD WHAT IT IS.

>> THESE ARE SORT OF INTERLOCKING NONDISCLOSURE AGREEMENTS SO THAT ALL THESE FOLKS CAN TALK TO EACH OTHER AND PLAN.

BUT CONTINUE TO WITHHOLD ALL OF THAT PLANNING FROM THE PUBLIC.

AND TO DO SO OVER SUCH A LONG PERIOD OF TIME REALLY IS PERHAPS THE MOST EXTREME EXAMPLE OF SECRECY THAT WE'VE SEEN.

>> Kaomi: THE MCEA CURRENTLY IS SUING FIVE HYPER-SCALE DATA CENTER PROJECTS IN THE STATE.

SHE SAYS ONE OF THE PROBLEMS IS THAT NO ONE ENTITY HAS FULL AUTHORITY OVER DATA CENTERS.

BOB KOHLMEYER SAYS HE HASN'T GOTTEN MUCH SLEEP.

HE SAYS TRUST IS HARD TO WIN BACK.

>> THE DEVELOPERS ARE BEING PROTECTED, BUT THE C