Mortenson Development said that it will not seek permits for a data center project in Hermantown, Minnesota, at the city's next commission meeting.

Last month, following local pushback, the Minnesota Environmental Quality Board said that the project required further review, with a lawsuit filed by two citizen groups a few weeks later.

Dissatisfied locals formed the Stop the Hermantown Data Center (SHDC) group and partnered with the Minnesota Center for Environmental Advocacy (MCEA) for the lawsuit.

It claimed that Hermantown knew about the potential 1.8 million square foot (167,225 sqm) data center since at least September 2024, but did not publicly disclose it until this October. It also alleged that the Alternative Urban Areawide Review avoided studying "known and anticipated environmental impacts of a large data center."

These issues were expected to come to a head on November 18, with a planning and zoning commission meeting.

Now, Dan Lessor, Mortenson VP, told Hermantown city officials that the company would not continue to seek permits at the meeting. He said the decision was made prior to the lawsuit.

Mortenson plans to continue to pursue the projects, but would rework its approach.

"We're considering some material changes, based on the thoughts and the feedback we've received," Lessor said, per the Duluth News Tribune. "This is an extremely large project that clearly matters to a lot of people."

He added: “The project team understands the significance of the proposed project, not just as an infrastructure investment, but as a long-term relationship with residents, business owners, the city of Hermantown, St. Louis County, and the greater Northland region.

"We look forward to continuing our partnership with the city of Hermantown to ensure this project reflects the values and priorities of the community while meaningfully participating in the public process.”