The tech giant behind the world’s most-used search engine — along with Google Maps, Gmail and other digital services — has been revealed as the company planning a major data center in Pine Island.
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The facility will anchor Project Skyway, a 482-acre technology park on the north end of the city being developed by Minneapolis-based Ryan Companies US Inc..
Construction is expected to begin before the end of 2026, according to Peter Fitzgerald, vice president of Real Estate Development for Ryan Companies.
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.”
As the first confirmed tenant in Project Skyway, Google plans to construct a data center of approximately 250,000 square feet, along with a 35,000-square-foot office building, on roughly 88 acres of the site.
The project will also include 18 acres dedicated to stormwater management and greenspace featuring pollinator plantings — a design element meant to balance industrial development with environmental considerations.
Fitzgerald said the facility is expected to bring 100 permanent full-time jobs once operational, along with approximately 500 long-term skilled trades positions during the construction phase.
“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 noted that city leaders have worked strategically to grow the tax base while attracting high-paying jobs.
“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 infrastructure spending, Google has agreed to invest $25 million over 20 years into Pine Island Public Schools through its Panther Program education fund. The agreement is designed to provide predictable revenue to expand STEM education, modernize classroom technology and create workforce pathways aligned with future job markets.
“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.
Superintendent Barry Schmidt said the program reflects strong collaboration between the city and school district.
“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.
Under a Feb. 4 development agreement, the city approved a tax-incentive package that could abate $36 million in property taxes over up to 28 years. Even with the abatement, officials estimate Pine Island would collect roughly $131 million in new property tax revenue over the life of the agreement. The developer will also contribute annually to two separate funds — one benefiting the city and another for the school district — totaling about $27 million.
Not all residents have supported the project. At multiple town halls and city council meetings over the past year, some community members questioned the sufficiency of the environmental review, potential neighborhood impacts and whether the tax incentives were excessive.
The Minnesota Center for Environmental Advocacy filed a lawsuit on Oct. 16 challenging the alternative urban areawide review completed by the city in 2025. The group is seeking a more comprehensive environmental impact statement. A hearing requesting summary judgment is scheduled for April 6 in Goodhue County District Court.
Water use has been a central concern. Data centers often rely on water-cooled systems that consume large volumes annually.
Google says this facility will use advanced air-cooling technology and will not rely on water for cooling operations.
“Water use will be limited to domestic needs and operations such as bathroom and kitchen facilities,” the statement read.
Power for the data center will be supplied by Xcel Energy. As part of their agreement, Google and Xcel will work together to add 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.”
Bria Shea, president of Xcel Energy–Minnesota, North Dakota and South Dakota, emphasized the broader economic implications.
“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,” Shea said. “This unique agreement is a model for data center partnerships in that it fulfills and protects Minnesota’s goals for a carbon-free future.”
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Ryan Companies initially approached Pine Island without a tenant secured. Over time, several industrial and technology firms expressed interest, but Fitzgerald said Google’s commitment validates the long-term vision for 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. “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.”
City Administrator Elizabeth Howard framed the project within a broader rural development context.
“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.”
With Google now confirmed as the anchor tenant, Pine Island’s Project Skyway moves from concept to reality — potentially reshaping the city’s economic future for decades to come.
Originally reported by Brian Todd | Forum News Service in Twin Cities.
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