Project Skyway

A photo of downtown Pine Island, Minnesota. City Hall is visible in the foreground.

About

Project Skyway is a new technology campus in Pine Island, developed in partnership on the initial project with Google. The project will bring meaningful, long-lasting benefits to the community by supporting local services, generating stable revenue for the City, and creating good jobs close to home. This significant investment in local infrastructure and economic growth is designed to be a cornerstone of the city’s future.

As it develops, Project Skyway will help meet the growing demand for secure digital infrastructure, strengthening the country’s digital backbone. We are committed to being a responsible, community-minded partner for Pine Island, with a focus on sustainable development and long-term local engagement initiatives that will benefit the entire community.

  • $20M+ in road and utility upgrades, paid by the developer
Map of the project location for Project Skyway, showing it is north of Pine Island, MN, adjacent to highway 52.

Community Benefits


  • Hundreds of millions of dollars of investment
  • Tens of millions of dollars in new property tax revenue to support schools, city services, county services, and public amenities

  • Approximately 100 permanent operational jobs, for the initial project
  • Hundreds of long-term construction jobs, for the initial project
  • Advertised locally and require a wide range of skills

  • $20M+ in road and utility upgrades
  • Completely funded by the developer
  • Benefits the surrounding community

  • Long-term funding and support for education, workforce training, and local programs

What is an AUAR?

The Alternative Urban Areawide Review (AUAR) is a well-established planning tool in Minnesota for responsibly planning multi-phase, market-driven projects. Since 1988, it has been used to analyze large areas of land that may be subject to various uses over time. Given the size and anticipated duration of the Pine Island development, the AUAR provides a framework to responsibly react to market interest.

What is the status of the project?

Ryan has been working proactively with the City of Pine Island and other project partners to prepare over 400 acres for future development, including completing the AUAR process, hosting three public open houses, and participating in multiple public meetings. These meetings began in March 2025, when the City Council started reviewing the AUAR through a series of sessions, leading up to its official adoption and submission. Several companies have evaluated—and will continue to evaluate—the site for potential investment. As is common practice in site selection, these evaluations remain confidential to protect business interests in a highly competitive environment. The initial project entitlements received unanimous approval at the January city council meeting, and permit submissions are anticipated in early 2026. Through the remainder of the project, we will continue to update the project website accordingly.

Which local and state government agencies and utilities will be involved in reviewing the project?
  • Minnesota Pollution Control Agency (MPCA) 
  • Minnesota Department of Transportation (MNDOT) 
  • Minnesota Department of Natural Resources (DNR) 
  • Minnesota State Historic Preservation Office (MNSHPO) 
  • Minnesota Public Utilities Commission 
  • City of Pine Island 
  • Pine Island Township 
  • Goodhue County 
  • Xcel Energy 
How will the project affect city tax revenue?

The project will bring additional tax revenue to the City, County, and School District, supporting existing and expanded public services. 

Will my utilities increase as a result of the project?

In short, no. Utility bill increases typically occur when utility companies invest in their infrastructure and service delivery, and the cost is spread across all users, rather than due to a single development project. To protect against this possibility, Xcel Energy files with the Public Utilities Commission to establish consumer safeguards. Infrastructure upgrades for large customers are paid for by the developer to prevent this cost-sharing. Like nearly every other service, utility bills (including electricity) can increase over time, but won’t as a direct result of this project. Locally managed utilities, such as water, sewer, and storm sewer charges, will not increase as a result of this project.

What are the sustainable energy goals? 

Xcel Energy will serve the project and will meet the State of Minnesota requirement to be carbon-free by 2040.

What is the proposed water usage?

The estimated water usage amount is 152,000 gallons per day (according to the adopted AUAR), which is less than that of a similarly sized residential subdivision.

For comparison:

  • Approximately 450 acres of irrigated cropland would require around 400,000 gallons of water per day.
  • The same project area (over 400 acres) would support over 1,000 homes and would use about 274,000 gallons per day.
What are other environmental and sustainability considerations?

The project will meet or exceed all state and local permitting requirements.


Local Media coverage

DateArticle
3/4/2025Pine Island City Council Starts Environmental Process Toward 482 Acre Industrial Park
5/31/2025Development Booming For Rochester’s Neighbors
9/16/2025Pine Island Council Meeting Draws Data Center Opponents
10/8/2025Pine Island Town Hall Brings Residents with Questions on Project Skyway
10/17/2025Environmental Group Appeals Against Pine Island Technology Park
11/11/2025What’s the Real Story with Data Center Developments?
12/16/2025Pine Island City Council Approves Preliminary Plat and Development Plan for Data Center Technology Park
2/5/2026Pine Island Council Hears Then Approves Financial Incentive Plan for Project Skyway
2/24/2026The Company Building Pine Island Data Center is Finally Revealed
2/25/2026Google News Does Little to Ease Concerns of Pine Island Data Center Opponents


PROJECT SCHEDULE

DateMeeting TypeMeeting Topic(s)
3/4/2025City CouncilRequest to Approve Environmental Assessment Worksheet Distribution
4/9/2025Open HouseScope EAW
5/6/2025City CouncilResolution 25-21: Approving AUAR Scoping Document
6/3/2025City CouncilRequest to Approve Draft Alternative Urban Areawide Review (AUAR)
7/8/2025Open HouseAUAR Document
8/19/2025City CouncilResolution 25-34: Approving Final Alternative Urban Areawide Review
9/16/2025City CouncilResolution 25-42: Approving Adoption of Final Alternative Urban Areawide Review
10/8/2025Open HouseGeneral Project Open House
11/10/2025Planning & Zoning WorkshopReview Phase 1 Development Applications
12/9/2025Planning & ZoningPre-Plat, Planned Unit Development (PUD)*
12/16/2025City CouncilPre-Plat, Planned Unit Development (PUD)*
1/13/2026Planning & ZoningFinal Plat, Rezoning, Planned Unit Development (PUD), City Development Agreement*
1/20/2026City CouncilFinal Plat, Rezoning, Planned Unit Development (PUD), City Development Agreement*
2/4/2026City CouncilCity Council Business Subsidy Agreement*

* 5-0 Unanimously Approved