Project Skyway
Learn more about the project, how it affects the Pine Island community, and share your feedback.
About
Project Skyway
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.
eNVIRONMENTAL & SITE Highlights
- $20M+ in road and utility upgrades, paid by the developer
- 2.5 miles of public water main and 0.5 miles of public sewer main, paid for by the developer
- 1 mile of gravel road upgraded to paved city road paid for by the developer
- 18.5 acres dedicated to stormwater treatment, paid for by the developer
- 300+ newly planted trees proposed, paid for by the developer
- Pollinator and native prairie seed mix to be planted across 40 acres, paid for by the developer
- Green space proposed exceeds City code requirements
Map of the project location
Proposed site map
Community Benefits
Building Jobs & Opportunities
Economic Impact
Increased revenue for local amenities.
- 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
Jobs
Ongoing opportunity for community members.
- 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
Infrastructure
City improvements at no cost to the community.
- $20M+ in road and utility upgrades
- Completely funded by the developer
- Benefits the surrounding community
Community Partnership
Long-term support and funding.
- Long-term funding and support for education, workforce training, and local programs
Priority Topics
Addressing Community Concerns
Transparency
Fourteen (14) public meetings have been held, including three (3) public open houses, to allow residents to more fully understand the exhaustive development process set forth by law and ask questions of the developer. Please review our Public Participation newsletter for more information. You can find the article by clicking the Skyway Newsletter link at the top of the screen.
Water
The water required for this proposed development is low compared to many land use alternatives of the same acreage, including an irrigated farm and a residential community. The project would connect to the municipal water system and would not require expansion of the city’s water capacity or a permit. Please review our Water Usage newsletter for more information via the Skyway Newsletter link at the top of the screen.
Electricity
Any necessary electrical infrastructure for this project will be paid for by the developer. The project will be served by Xcel Energy and aligns with Minnesota’s 100% carbon-free energy goal by 2040. Please review our Electricity newsletter for more information via the Skyway Newsletter link at the top of the screen.
Noise
The project will comply with Minnesota’s State Noise Standards for residential areas, which allow up to 60 dBA during the day and 50 dBA at night. For context, the current noise level about 2,300 feet from Highway 52 is roughly 50 dBA, which is similar to a quiet refrigerator, a library, or a normal conversation. Please review our Governing Commitments newsletter for more information via the Skyway Newsletter link at the top of the screen.
For additional clarifications, please visit the FAQs page.
Frequently Asked Questions
Project Overview
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.
Power & Utilities
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.
Water & Environment
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.
For additional answers to frequently asked questions, please visit the FAQs page.
Local Media coverage
PROJECT SCHEDULE
| Date | Meeting Type | Meeting Topic(s) |
|---|---|---|
| 3/4/2025 | City Council | Request to Approve Environmental Assessment Worksheet Distribution |
| 4/9/2025 | Open House | Scope EAW |
| 5/6/2025 | City Council | Resolution 25-21: Approving AUAR Scoping Document |
| 6/3/2025 | City Council | Request to Approve Draft Alternative Urban Areawide Review (AUAR) |
| 7/8/2025 | Open House | AUAR Document |
| 8/19/2025 | City Council | Resolution 25-34: Approving Final Alternative Urban Areawide Review |
| 9/16/2025 | City Council | Resolution 25-42: Approving Adoption of Final Alternative Urban Areawide Review |
| 10/8/2025 | Open House | General Project Open House |
| 11/10/2025 | Planning & Zoning Workshop | Review Phase 1 Development Applications |
| 12/9/2025 | Planning & Zoning | Pre-Plat, Planned Unit Development (PUD)* |
| 12/16/2025 | City Council | Pre-Plat, Planned Unit Development (PUD)* |
| 1/13/2026 | Planning & Zoning | Final Plat, Rezoning, Planned Unit Development (PUD), City Development Agreement* |
| 1/20/2026 | City Council | Final Plat, Rezoning, Planned Unit Development (PUD), City Development Agreement* |
| 2/4/2026 | City Council | City Council Business Subsidy Agreement* |
* 5-0 Unanimously Approved
WHAT OTHERS ARE SAYING
| What is it actually like to have a data center as a neighbor? In this column, a resident who lives near six of them shares their firsthand experience, dispelling common myths. This perspective highlights how thoughtful planning and modern design make these facilities peaceful additions to local neighborhoods. | What it’s Like to Live Next to a Data Center |
| This recent commentary highlights why Minnesota must remain competitive by welcoming advanced tech infrastructure. Project Skyway represents exactly this kind of future-focused investment, designed to bring long-term economic growth and modern innovation to our region without compromising our values. | Minnesota Can’t Afford to Turn Away the Infrastructure of the Future |
| A recent piece in MinnPost article highlights a topic we care deeply about, ensuring large developments don’t burden local utility customers. We completely agree. This article underscores exactly why Project Skyway operates under the state’s new large-load tariff: to ensure we pay for our own power needs while fully protecting everyday ratepayers. | Big Tech Should Pay its Own Way on Powering Data Centers |
| Former U.S. Secretary of Energy Jennifer Granholm has been a vocal advocate for ensuring large tech developments secure their own power. This perspective perfectly aligns with Project Skyway’s core utility strategy, operating under Minnesota’s new large load tariff to ensure we fund our own energy needs and fully protect local ratepayers. | Jennifer Granholm’s Minnesota Data Center Project: A Model for Clean Energy Transition |
| The Star Tribune recently explored the critical intersection of AI data center development and the need to protect local water and land resources. This article underscores Project Skyway can promote economic development and protect the environment at the same time. | Union Leader: Minnesota Can Lead on Responsible Data Center Development |
| This column details how critical it is for Minnesota to secure its place in the growing digital economy. The author explains how welcoming data centers brings stable construction jobs, high-tech employment, and long-term tax revenues that keep local communities thriving. It is a fantastic look at why projects of this scale are so important for our region’s economic future. | Minnesota Cannot Afford to Miss the Data Center Economy |
| This letter in the Post Bulletin offers a great perspective on how major technology developments create steady, high-paying jobs for local workers. The piece highlights how investments in these facilities support union trades during construction and create lasting, high-tech employment opportunities that keep local families working close to home. | Tech Investments Create Good Jobs |
| This column examines the broader conversation surrounding new developments in Minnesota. It is a thought-provoking perspective on why welcoming responsible development is so vital to securing our state’s long-term economic prosperity. | Minnesota’s Environmental Lobby Has Officially Jumped the Shark |
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