The tract logo.
Contact Us

Understanding the Facts

Power

Positive Impact on Electricity Pricing and Infrastructure

As provided on their website, Dakota Electric is committed to providing safe, reliable, and affordable power to their members. Answers to commonly asked questions about large new electrical loads, such as those from a technology park, and how Dakota Electric protects existing members while fulfilling its obligation to serve can be found here: https://www.dakotaelectric.com/large-loads/

Additionally utilities that have years of experience serving large load customers, including Xcel and Indiana Michigan power, are saying that they lower rates for all customers. Payments from data centers have supported system reliability improvements and data center projects have brought economic development to communities.

Dakota Electric Association will only interconnect new load that can be safely and reliably served. All proposed projects undergo rigorous engineering and interconnection studies conducted by Great River Energy in coordination with Midcontinent Independent System Operator under established regional planning and reliability standards. Large load customers typically fund system reliability upgrades that are enjoyed by all customers. Click here to see Dakota Electric’s March 2026 Newsletter.

In their March 2026 newsletter, Dakota Electric explains that it uses long-term power-supply planning and continuous Board review to maintain a balanced mix of resources and ensure reliable, affordable service as regional electricity demand grows.

Large new loads such as the technology park are evaluated individually using established engineering and reliability studies. Each project must meet specific infrastructure and cost requirements, and can proceed only if studies confirm the system can safely support the added demand without compromising service to existing members.

For more details on how large electrical loads are reviewed and integrated, please see the newsletter linked here.

Backup generators at facilities like a technology park are critical to continuous operations. The generators are not used for routine power supply, remaining in standby mode except for system testing and during rare outages of the electrical grid.

Like those used in hospitals, emergency response facilities, and other critical infrastructure, generators are a standard reliability measure to protect sensitive equipment and maintain uninterrupted operations.

All generator systems must comply with stringent federal, state, and local requirements. This includes air emissions regulations (such as U.S. EPA and state permitting programs), local zoning and noise ordinances, and safety standards established by the National Fire Protection Association (NFPA), including fuel storage, fire protection, and operational safety protocols.

In addition, large-scale power infrastructure associated with these facilities is subject to oversight by the Minnesota Public Utilities Commission (PUC), which requires a Certificate of Need for projects exceeding certain capacity thresholds (typically 50 megawatts or more). This process ensures that new energy infrastructure is necessary, cost-effective, and aligned with maintaining a safe and reliable electric grid.

Routine generator testing is limited in duration and frequency and must meet applicable air quality and noise standards. Modern generators are also equipped with advanced emissions controls and are often paired with ultra-low sulfur diesel fuel or other cleaner technologies to minimize environmental impacts.

On-site power generation is not planned for this project.

The site is planned so that generators will be located more interior to the site and will be fully screened from adjacent residential properties.

Our facility uses electricity from the regional grid. Under Minnesota law, that grid must move step by step to 80%, 90%, and then 100% carbon free power by 2040, as shown in our Minnesota Carbon Free Electricity Milestones graphic (Figure 1). That means the power serving this data center will get steadily cleaner over time. Power is delivered to the site by Dakota Electric Association (DEA), whose wholesale power is supplied by Great River Energy (GRE). Power needed to serve future development is carefully planned and approved through regulated state and regional (MISO) processes that prioritize reliability, cost, and environmental responsibility. The end user is solely responsible for securing the electric capacity required to supply energy to the technology park, which helps remove financial risk from the utilities.

Tract is partnering with Dakota Electric and Great River Energy to support Minnesota’s clean energy goals by pursuing Battery Energy Storage Systems (BESS) development in Minnesota. The proposed development both enables broader renewable development in the Minnesota grid, and shields the rate base from the costs of new capacity development. BESS solutions enhance sustainability and deliver clean capacity for data center needs by charging during off-peak hours, and discharging during peak hours. BESS bridges the intermittent nature of renewable power sources like solar and wind, and supports grid stability and reliability for all.

The same rules that apply to every home and business also apply here. Utilities are required to add more wind, solar, hydropower, and other carbon free resources so they can meet the state’s milestones. Our electricity use is planned inside that transition, not outside of it. This project is designed to align with Minnesota’s energy policy and with regional utility planning. DEA and GRE plan future generation and transmission through Minnesota’s regulatory processes, where any new projects are evaluated holistically to ensure they are cost effective, reliable, and consistent with environmental standards. Cleaner energy sources are prioritized: DEA’s current mix relies significantly on lower emission natural gas as a flexible bridge while more renewable energy comes online, and both DEA and GRE actively pursue renewable power purchase agreements (PPAs) for wind and solar to meet growing demand and reduce carbon intensity over time.

Because technology parks like this are large, long term electricity customers, they can help make new wind, solar, and storage projects financially viable. That demand helps the industry act as a catalyst for accelerating new renewables and reducing carbon across the whole grid. So-called “large load” customers (such as technology parks) are among the largest corporate buyers of renewable energy in the world and often have their own ambitious sustainability targets, which support new renewable projects and long term clean energy investments in the region. In short, this project does not simply consume power — it helps enable investment in newer, cleaner energy infrastructure and supports a more sustainable and resilient regional grid over time.

Water

Minnesota Climate Well-Suited to Cooling Efficiency

Minnesota is uniquely well-suited for technology parks because its cooler climate allows facilities to rely heavily on natural “free cooling” with outdoor air, rather than large volumes of water. In modern evaporative systems, outdoor air is used as much as possible, and evaporated water is only needed when temperatures inside the data halls rise above what the IT equipment and servers can handle. As a result, water for cooling is generally required only during the summer, with more than 80% of annual cooling water use expected to occur between June and August. Evaporative systems typically cycle water 3 to 6 times depending on the water quality and onsite treatment regimen. “Once through” cooling systems are not allowed in the State of Minnesota for industrial uses per state statute.

The project will be served from the City’s municipal wells and water distribution system, so there would not be any drawdown of the aquifer in the direct vicinity of the project. In fact, there will be materially less water drawn from wells in the immediate area since the wells used on site to irrigate the golf course and agricultural landwill be capped. This would have a net positive impact on the groundwater table in the direct vicinity of the project compared to the previous irrigation use. The property has two existing irrigation wells (Permit #1977-6290 & #1976-5250) that were previously used for golf course irrigation and agricultural purposes with permitted groundwater appropriations from the DNR of up to 48.6 MGY. The  campus cannot use more than 50 MGY at full operations as defined in the approved Development Contract with the City;  roughly the same amount as the permitted groundwater appropriations of the property. The Developer intends to cap these wells, which would help offset any additional usage from the municipal wells due to the project and provide groundwater recharge to the project area. Additionally, any water supplied to the project from the municipal system would need to be accounted for under the City’s water appropriations permit as approved by the DNR. The DNR evaluates whether the total withdrawals are sustainable, including potential impacts on the underlying aquifer, nearby private and municipal wells, surface waters and wetlands, as well as the City’s conservation practices and long-term demand projections. Tract is committed to sustainable and efficient water use and will eliminate historic on-site pumping.

The Prairie du Chien–Jordan Aquifer is one of the largest groundwater sources in Minnesota, extending across much of the southern and central parts of the state. It serves as a primary drinking water supply for millions of residents and supports municipal, agricultural, and industrial uses. The aquifer is known for its high capacity and ability to recharge over time, making it a vital long-term water resource for the region. If the project were to consume 50 million gallons per year (GPY) once construction is complete, the Technology Park would represent less than 1% of all groundwater appropriations and 1.5% of groundwater usage within a 5-mile radius. It represents only 0.14% of groundwater appropriations and 0.20% of groundwater usage within a 10-mile radius. A single user at this scale in comparison to the regional usage will have a minimal impact to the Prairie du Chien – Jordan aquifer.

Even when the technology park is operating at full capacity, the daily water usage of the campus will be substantially less than the City’s current daily consumption. The project requested a peak day water allocation between 0.49 and 2.93 million gallons per day (MGD) in the approved Development Agreement. However, this usage would only be expected to occur on the hottest day of the year when all servers are running simultaneously, and water is needed the most to cool the data center halls efficiently; this is known as the peak day usage. The average daily water use is estimated to be 137,000 gallons per day (GPD) during full operations, which is less than 6% of the City’s current average day consumption. The City’s average day water demand is about 2.3 MGD and the City’s peak day demand is 6.90 MGD. At full operations, the Farmington Technology Park is expected to use approximately 6% of the City’s total water capacity, while generating about $16 million per year in total property tax revenue.

The entire campus cannot use more than 50 million gallons per year (MGY) or 137,000 gallons per day (GPD) of water during full operations as defined in the approved Development Contract. This is roughly the same amount of water that is appropriated under the two existing well permits on the property to irrigate the old golf course and agricultural land. The City of Farmington has 1 billion gallons per year (GPY) of permitted groundwater appropriations from the DNR (Permit No. 1959-0725), and is pumping between 750 to 835 million gallons per year (MGY). Based on the current DNR appropriation permit held by the City, the water usage from the project would not adversely affect the demand on the Prairie du Chien – Jordan aquifers.

Traffic

Minimal Traffic Impact

The Technology Park will generate minimal traffic during operations, especially when compared to other contemplated uses for the property, such as residential and commercial. A preliminary Traffic Impact Analysis was completed as part of the AUAR, and identified a few offsite roadway improvements such as an eastbound right and westbound left turn lane on MN 50 into the site, and northbound right and southbound left turn lane at the intersection of MN 3 & 225th Street. Construction traffic during peak onsite construction will generate the most traffic to the site, and Tract will fund and construction 100% of the offsite roadway improvements ahead of any heavy construction to mitigate any trip disruption in the area. Construction traffic will also follow approved haul routes on MN 50 (220th Street West) or 225th Street West.

Environmental

Urban Area Impact Review for Consistent Environmental Regulation

Tract completed and received all required approvals for the AUAR (Alternative Urban Areawide Review) for the Farmington Technology Park. The review is consistent with Minnesota Environmental Quality Board (EQB) guidance regarding the use of AUARs for evaluating potential development scenarios such as technology parks.

Additional information on the definitions, applicability, and procedures for AUARs, including their use for large-scale commercial and industrial developments such as data centers, is summarized in the EQB guidance available at: https://www.eqb.state.mn.us/environmental-review/data-centers-faq

The campus will include on‑site stormwater basins and best‑management practices that capture, slow, infiltrate, and treat rainwater on the property before any controlled release. We must meet all city, state, and federal stormwater standards, including limits on runoff rate, volume, quality, and temperature, so that we do not increase historical discharge rates or harm nearby wetlands or trout streams.

Farmington is served by the Metropolitan Council Environmental Services (MCES) regional wastewater system, including the Empire Wastewater Treatment Plant that treats flows from Farmington and neighboring cities. The project intends for cooling system and domestic wastewater to discharge to the city’s sanitary sewer system for treatment in the regional MCES system. The project is working with the Metropolitan Council to confirm the system’s conditions to accept this flow and will design and operate within those. There will be no discharge of cooling wastewater or domestic wastewater directly into the Vermillion River or any stream/wetland body at any time.

 

 

The project will be served from the City’s municipal wells and water distribution system, so this project would not require any drawdown of the aquifer near the Vermillion River. This would have a net positive impact on the local groundwater table for the Vermillion River area compared to the previous irrigation and agricultural use which included two irrigation wells within the project area. Any water supplied to the project from the municipal system would need to be accounted for under the City’s water appropriations permit as approved by the DNR.

If temporary construction dewatering is needed it would be subject to relevant local permits and inspections from the City of Farmington.

Disturbance is limited to minor, conservation-oriented activities—such as clearing debris or dead vegetation, removing invasive non-native species, and other environmental management practices—but only when reasonably approved by the City, and to maintenance or replacement of existing or approved public utilities and stormwater facilities.

These protections also serve to conserve and maintain habitat conditions ensuring that no activities within the easement result in the degradation, fragmentation, or loss of such species’ habitat, consistent with guidance and regulatory requirements of the Minnesota Department of Natural Resources (DNR) and the U.S. Fish and Wildlife Service (USFWS).

The Farmington Technology Park Final Plat establishes a permanent, non-exclusive conservation area over the Vermillion River corridor and its associated wetlands and floodplain, prohibiting virtually all physical disturbance of existing landscaping, open space, wetlands, and vegetation on 72 acres of land. Within this easement area, no structures, paving, mowing, filling, cutting, dumping, yard-waste disposal, fertilizer application, or introduction of non-native vegetation is allowed, and wetland buffer strip monuments must remain in place, thereby preserving riparian and floodplain functions and habitat in an undisturbed state.

Sound

Safeguards Against Sound Pollution

The terms of the PUD require the end user to conduct a noise study, and they must meet the Farmington noise ordinances & maintain the MPCA noise standards for residential uses at the property boundary, which is 60-65 dBa during the daytime and 50-55 dBa in the evening. Failure to meet this standard may result in revocation of the PUD.

Modern technology parks are designed to minimize noise emissions and employ advanced cooling and infrastructure technologies to ensure quiet operation. Noise levels will comply with Farmington noise ordinances and standards. This can be achieved through noise studies specific to such data center building to ensure that the noise generated from the data center building and the building’s associated infrastructure conforms to Farmington’s noise regulations.

Prior to the physical development of the park, Tract and/or end users, will work with Farmington staff to identify any areas of interest to implement any number of physical sound attenuation which could include ground-supported barriers, earthen berms, mechanical screening or other attenuation techniques as specifically called out in subsequent sound studies. It is common practice that any mechanical equipment be: (i) installed on the rooftop of a building or (ii) installed on the opposite exterior side of any adjacent residential uses.

The technology park will be engineered so that their ventilation systems sound like standard HVAC equipment on large commercial buildings, not a loud or irritating buzz. Modern facilities specify and control cooling fans and other equipment to avoid the low-frequency tonal “hum” that can cause rumble or vibration at a distance. With these design choices and required noise-control features, properly designed projects like this one are not expected to generate the kind of low-frequency noise that produces the persistent humming or vibration neighbors are concerned about.

Lighting

Restrictive Lighting Standards Apply to the Project

In addition to the City’s lighting standards, the Farmington Technology Park PUD includes more restrictive lighting standards to further mitigate exterior lighting of the campus.

The maximum height of pole-mounted exterior lighting shall be eighteen feet (18′). All exterior lighting fixtures, including pole-mounted exterior lighting and building-mounted exterior lighting, shall be fully shielded with house side shields installed. Lighting shall not exceed .50 foot-candles at the interior edge of the natural buffer, as applicable. Lighting that is exempt from these requirements includes temporary lighting and lighting provided for emergency or safety and security purposes as required by: the Building Code, Electrical Code, or otherwise within the City Code. Signage related to the authorized uses shall not be illuminated. The uplighting of buildings is prohibited. The maximum height of any building-mounted exterior light fixture shall be 35 feet in height, with the exception of motion-activated security lighting.

Construction lighting will be carefully designed and managed to prioritize safety while minimizing impacts on surrounding residential areas. Temporary, fully shielded, and downward-directed lighting will be used to keep light focused within active work zones and prevent spillover, glare, and skyglow. Lights will be positioned toward the interior of the site, use warmer color temperatures where feasible, and operate only during active construction periods, with minimal lighting maintained for safety and security.

For any nighttime work, lighting will be designed and installed to ensure appropriate placement, shielding, and hours of operation. Lighting will be regularly monitored and adjusted as needed, and any concerns from nearby residents will be addressed promptly to further reduce off-site impacts.

Construction lighting is not standardized across projects. As noted in this letter from Mortenson (a major construction company), construction lighting is designed case-by-case based on each site’s conditions, surrounding land uses, and proximity to neighboring properties.

The lighting currently visible at the Rosemount Meta data center reflects the specific conditions of that site, which is in a different context than the Farmington Technology Park site. Much of what is seen there today is temporary construction lighting installed to support worker safety and site security during active construction, and will be removed when construction is complete.

By contrast, construction lighting for the Farmington Campus will be tailored to Farmington’s own context, including neighborhood character, how close the work is to nearby homes or businesses, and community feedback and local expectations. Where construction occurs near neighbors, the contractor can use tools such as shielding, directional fixtures, reduced light levels, and time-based controls to help minimize impacts while maintaining safe working conditions.

The contractor on the Rosemount site has made clear that it does not represent what a construction lighting plan would look like for a project in Farmington. Each project is planned individually, and Tract emphasizes listening to community concerns and working collaboratively with customers, local leaders, and residents to deliver projects in a way that respects the communities where they work.

In short, Farmington’s construction lighting will be designed for Farmington, not copied from Rosemount.