Local View: Northland, Minnesota Power well-positioned for data center – Duluth News Tribune

Report on the Proposed Hermantown Data Center and Alignment with Sustainable Development Goals

Executive Summary

This report analyzes the proposed Hermantown data center project in the context of regional development and its alignment with key United Nations Sustainable Development Goals (SDGs). The project, supported by Minnesota Power, is positioned to advance economic growth (SDG 8), promote sustainable infrastructure (SDG 9), and contribute to clean energy targets (SDG 7, SDG 13) while ensuring affordability and grid reliability for the community.

Economic Growth and Sustainable Communities (SDG 8, SDG 11)

The data center project is identified as a significant opportunity for regional economic development, directly supporting SDG 8 (Decent Work and Economic Growth) and SDG 11 (Sustainable Cities and Communities).

• Economic Opportunities: The project is expected to generate a growing tax base and create new jobs.
• Industry Diversification: It represents a diversification of the regional economy, which has historically been based on natural resources.
• Community Benefit: By expanding the economic base, the project contributes to the financial sustainability and resilience of the local community.

Ensuring Affordable, Reliable, and Sustainable Energy (SDG 7, SDG 9)

The project’s implementation plan includes robust safeguards to protect existing customers and maintain grid integrity, aligning with SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure).

1. Rate Affordability: A new Minnesota law prohibits passing the costs of serving new data centers to existing customers. The addition of a large industrial customer is expected to lower overall rates by distributing the fixed costs of the electrical grid across a broader customer base, enhancing energy affordability.
2. Infrastructure Reliability: Minnesota Power conducts rigorous infrastructure studies for any new large connection. Under state law, the data center is required to pay for any system upgrades needed to maintain grid reliability, ensuring the development of resilient infrastructure (SDG 9) without burdening current users.
3. Regulatory Framework: The system is governed by the Minnesota Public Utilities Commission, which provides oversight on rates and energy delivery, ensuring that the infrastructure can support growth sustainably.

Advancing Clean Energy and Climate Action (SDG 7, SDG 13)

The project is compatible with Minnesota Power’s long-term strategy for decarbonization, contributing to state and global climate goals.

• Commitment to Carbon-Free Energy: Minnesota Power’s EnergyForward strategy is on track to meet the state mandate of 100% carbon-free energy by 2040, a direct contribution to SDG 13 (Climate Action). The utility was the first in the state to deliver over 50% renewable energy.
• Clean Energy Innovation: The integration of the data center aligns with this transition, as leading data-center companies often have their own carbon-free targets and actively participate in clean-energy innovation and partnerships. This synergy supports the transition to clean energy as outlined in SDG 7.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the proposed Hermantown data center and its impact on the local energy system and economy connects to several Sustainable Development Goals (SDGs). These goals relate to energy, economic growth, infrastructure, and climate action.

• SDG 7: Affordable and Clean Energy: The core of the article discusses providing reliable, affordable, and increasingly clean energy to support a new large-scale industrial customer while protecting existing customers.
• SDG 8: Decent Work and Economic Growth: The project is presented as an economic opportunity for the region, promising job creation, a larger tax base, and diversification of the local industry.
• SDG 9: Industry, Innovation, and Infrastructure: The article focuses on the resilience and capacity of the electrical infrastructure to support new industrial development (the data center) and highlights the innovative push towards clean energy by both the utility and its potential customers.
• SDG 13: Climate Action: The article explicitly mentions Minnesota Power’s strategy to achieve 100% carbon-free energy, aligning the new development with state-level climate goals.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the details provided, several specific SDG targets can be identified:

• Under SDG 7 (Affordable and Clean Energy):
  • Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services. The article directly addresses this by reassuring the community about “electric rates” and “grid stability,” stating that the project will “keep rates lower for everyone” and that “reliability is at the heart of everything we do.”
  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article highlights that “Minnesota Power was the first utility in the state to deliver over 50% renewable energy” and is on a path towards “100% carbon-free energy by 2040.”
• Under SDG 8 (Decent Work and Economic Growth):
  • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article points to the data center as an opportunity for “industry diversification” and notes that data-center companies are “driving clean-energy innovation.”
  • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… The project is cited as creating “new jobs” for the region.
• Under SDG 9 (Industry, Innovation, and Infrastructure):
  • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development. The article describes the utility’s “robust and rigorous process that includes conducting infrastructure studies” to ensure the electrical system can reliably serve new customers without impacting existing ones.
  • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable… The article discusses how any necessary “upgrades to maintain grid reliability” will be paid for by the new data center, ensuring the infrastructure is modernized sustainably while the utility pursues its 100% carbon-free energy goal.
• Under SDG 13 (Climate Action):
  • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article references the “state law requiring 100% carbon-free energy by 2040” and Minnesota Power’s “EnergyForward strategy” as the guiding frameworks for its operations, demonstrating the integration of climate goals into regional energy planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions or implies several indicators that can be used to track progress towards the identified targets:

• For SDG 7:
  • Indicator for Target 7.1: The stability of electricity rates for existing customers. The article implies this can be measured by monitoring whether costs are passed on to existing customers, which is prohibited by a “new Minnesota law.” Grid reliability can be measured by tracking power outages or system stress.
  • Indicator for Target 7.2: The percentage of energy delivered from renewable/carbon-free sources. The article provides specific data points: “over 50% renewable energy” currently delivered and a target of “100% carbon-free energy by 2040.”
• For SDG 8:
  • Indicator for Target 8.2/8.5: The number of new jobs created, the increase in the local tax base, and the degree of industry diversification. The article explicitly names “a growing tax base, new jobs, and industry diversification” as measurable economic opportunities.
• For SDG 9:
  • Indicator for Target 9.1/9.4: The completion of required infrastructure upgrades and the successful connection of the data center to the grid without negative impacts on regional power reliability. The article mentions “infrastructure studies” as a tool to ensure this outcome.
• For SDG 13:
  • Indicator for Target 13.2: Progress towards meeting the state-mandated goal of 100% carbon-free energy by 2040. This is a clear, long-term, and quantifiable indicator of integrating climate action into planning.

4. Summary Table of SDGs, Targets, and Indicators

Source: duluthnewstribune.com