ABOUT
Cannon Falls Technology Park
Cannon Falls Technology Park will be a master-planned data center campus. Data centers are the critical infrastructure of our modern world, powering the internet and providing us with a digital foundation. Led by a team of technology and development experts at Tract, the campus will be thoughtfully designed and planned to maximize economic benefits for the community with minimal impact.
Frequently Asked Questions (FAQs)
Project Overview
It is a proposed master-planned data center campus on ~253 acres north of Cannon Falls. The property was designated for industrial expansion in the 2003 Comprehensive Plan and has been annexed into the City for future industrial use. Data centers are considered a lower-impact use than many other industrial options (e.g., warehousing & distribution centers, manufacturing, bottling plants, meat production, feed lots, etc.) and provide higher tax revenue with fewer daily traffic and service demands.
The site is being developed by Tract, a land developer who specializes in preparing sites for large data center operators. Tract handles land assembly, permitting, infrastructure, and agreements. Data Center operators will construct the future buildings on-site and will be required to comply with all applicable local, state, and federal regulations to ensure safe and responsible operations.
This site in Cannon Falls was selected because of available land, proximity to high-voltage power transmission, availability of municipal water/wastewater supplies, and location along Highway 52 between the Twin Cities and Rochester. These factors make it cost-effective for utilities and operators while offering regional economic benefits.
Community & Economic Benefits
This project is anticipated to create over 250 permanent full-time jobs at full build-out. There are a variety of positions needed to operate and maintain a data center, offering opportunities for local residents. The project is also anticipated to create an additional 1,500 construction jobs. This will include a variety of skilled trades and other local workers filling jobs as electricians, mechanical engineers, utility contractors, plumbers, steel worker, and more.
Data centers generate substantial tax revenue for municipalities, counties, school districts and the State through a combination of property taxes, and sales & use tax. As Tract and the operator invest in the land, buildings, and site improvements, the increased property value is assessed and taxed and thus creates a substantial revenue stream for the City, County, and school district. Additionally, the State and County will receive significant sales & use tax for the capital spent on building & construction materials, and other real property purchases. The City of Cannon Falls does not currently have its own sales and use tax. The investment in data centers also stimulates economic activity in supporting service sectors like construction and maintenance while supporting other local businesses, all of which generate additional sales tax revenue.
Tax dollars generated from this investment can be used for:
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Emergency Services including funding for:
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Additional police and fire personnel
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Improvements or construction of new facilities like fire and police stations
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Purchase of new technology and equipment
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Training programs for first responders
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Infrastructure improvements for water, sewer, and roads
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Community Facilities
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New parks and park improvements like play equipment, seating, shelters, and restrooms
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Trail improvements and new trails
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Water & Wastewater
Water needs vary depending on the type of cooling system (air vs. water-based), equipment density, water quality, climate, and operational requirements. Generally, air cooling uses less water but more power, while water-based cooling uses less power but more water. As cooling technologies continue to evolve and become more efficient, water usage in data centers is expected to decrease.
The existing irrigation well on the property has a Minnesota Department of Natural Resources (DNR) water appropriations permit for up to 40.3 million gallons per year.
The project will be served by the City of Cannon Falls municipal water system and municipal wells as its primary water source. The onsite well can only be used for emergency use only (i.e. water main break, City reconstruction of main, etc.) as a condition of the approved Orderly Annexation Agreement with Randolph Township. Additionally, the project would need to obtain a new well permit or amend the existing well permit for industrial use through the DNR to use the onsite well for emergency use.
The City of Cannon Falls holds a Minnesota DNR water appropriation permit for 250
million gallons/year (MGY) from the Jordan Aquifer and Prairie du Chien. The current
average use of the entire City over the last 10 years is around 149 MGY, leaving over 100
MGY of unused water and that is thus available for future development. The maximum estimated demand for the data center campus is consistent with the existing well appropriations on the property. However, the project will not rely on private wells for its water source; instead, water will be provided through the City of Cannon Falls municipal system, ensuring ongoing accountability as all water use is metered, regulated, and consistent with City and DNR allocations.WHKS, on behalf of the City of Cannon Falls, prepared a water and wastewater system evaluation to determine the adequacy of the current water and wastewater systems to serve a data center campus and the City’s projected future growth plans. The evaluations concluded that the existing water and wastewater systems can serve the project without having any negative impacts to existing residents and was presented in a public hearing to the City Council and Planning Commission. The water system evaluation acknowledged that the City of Cannon Falls holds a Minnesota DNR water appropriation permit for 250 million gallons/year (MGY) from the Jordan Aquifer and Prairie du Chien. The current average use of the entire City over the last 10 years is around 149 MGY, leaving over 100 MGY of available appropriations for future development. Three wells, two storage tanks, and three booster stations also provide redundancy and resiliency.
Since the project will be served by the City’s municipal wells and the project’s water usage would be within the City’s current appropriation permit, no adverse impacts to any neighboring wells are expected. The Minnesota DNR issues appropriation permits after they’ve studied the groundwater impacts and have ensured that the appropriations will not negatively impact any surrounding wells.
Additionally, since the onsite well can only be used for emergency use in the rare instance that the City’s municipal lines are not in operation, this would significantly decrease the groundwater consumption from the current irrigation use. This would have a positive impact to the groundwater recharge and water table for any neighboring wells of the property.
Furthermore, most of the nearby residential wells draw water from the Jordan Aquifer (300–400 ft deep), while the existing irrigation well on the property taps the shallower Prairie du Chien Aquifer (150–300 ft). Since the existing irrigation well is shallower, this would not have an adverse impact to the water table for any of the deeper residential wells in the Prairie du Chien aquifer.
The DNR issues water appropriation permits and sets annual pumping limits. Once permitted, the DNR’s oversight includes but is not limited to water user reporting through the DNR’s Water Use Data System (MPARS), groundwater sustainability assessments to understand the water levels and ongoing impacts in a given area, and enforcement of the permit if the water withdrawals have any harmful impacts or reporting requirements are not met. If any nearby wells are thought to be impacted by the project, residents can file a complaint. The DNR may require corrective actions, reduce pumping, or impose fines.
Minnesota law prioritizes domestic use, agriculture, and livestock over industrial uses. If a conflict arises, the DNR could curtail the project’s water use to protect higher-priority users.
Industrial wastewater or non-contact cooling water could be managed through several methods depending on the site conditions, regulatory requirements, and operational constraints which would be determined at Site Plan. Potential methods include discharging the industrial wastewater into the City’s municipal system and wastewater treatment plant, attenuating onsite in rapid infiltration basins (RIBs), or discharging through other methods of spray irrigation, or a combination thereof.
The Wastewater Treatment Plant Evaluation completed by WHKS, on behalf of the City, confirmed that it has existing capacity to accept the industrial wastewater from the site given the low potential for organic matter and total suspended solids. If the operator chooses to discharge its industrial wastewater into the municipal system, they will be required to enter into an Agreement with the City, which would govern the volume and water quality of the effluent so there would be no disruptions to municipal wastewater system.
Alternatively, Rapid infiltration basins (RIBs) would provide some recharge of water to the aquifer, and spray irrigation could provide another use of the industrial wastewater through a potential partnership with the farming community.
The developer will fund and install all required extensions of water and sewer lines to the site. These costs are not borne by the City, taxpayers, or ratepayers.
Yes. The City, developer, and independent consultants (such as WHKS) will continue evaluating water and wastewater use as the project advances. As part of the Development Agreement with the City, Tract will establish thresholds for the water use and sewer discharge so it does not exceed the available capacity and water appropriations of the City’s systems.
Traffic improvements
The data center campus will generate minimal traffic, especially when compared to other light industrial uses that are contemplated for the property. A traffic impact analysis was completed in December 2024 that concluded the data center campus is expected to generate ~1,485 Average Daily Trips (“ADTs”) at full buildout, while other light industrial uses could generate ~5,900 ADTs (3x the amount of traffic compared to the data center campus) based on ITE Trip Gen. This is also a conservative estimate as ITE Trip Gen generally overestimates the number of employees for a typical data center campus.
Construction traffic for this site will be comparable to other construction sites of this scale. Construction trucks and personnel will enter and exit the property along County Road 29 Blvd. or Rochester Boulevard, which are the designated site entrances. Construction traffic will also follow approved haul routes, as determined in the Site Safety Plan. Additionally, traffic improvements such as temporary traffic signals, stop signs, and turn lanes will be installed to mitigate the impacts of the construction traffic and ensure the proper safety precautions are in place for residents and workers.
Power & Utilities
Tract is engaged with Dakota Electric Association and is proceeding with the service application and engineering studies.
A new substation will be constructed on site to serve the power needs of the technology park.
These infrastructure improvements are designed to ensure stable, uninterrupted service for both new tenants and existing residents.
No. Utilities design upgrades specifically to serve data centers without impacting existing customers. Regulators, utilities, and operators all share the goal of maintaining stable, reliable service.
The developer funds all required infrastructure improvements. Costs will not be passed on to ratepayers.
Planned Unit Development
A Planned Unit Development is an additional regulatory zoning tool which allows for flexibility in the design standards for a proposed project. For this data center project, the PUD provides additional design requirements -- such as greater setbacks and buffers, sound, and lighting standards – beyond the I-2 standard zoning requirements, creating a more restrictive and protective framework. Thus, the PUD serves as a benefit to the City by creating a more restrictive regulatory frame work for future development.
Along the northern property line, where the site is adjacent to residential uses, a 200-foot natural buffer and a 250-ft setback is proposed. The natural buffer will be planted with at least 260 trees. Berms may be constructed in the natural buffer area to increase the visual mitigation opportunities.
Data center buildings are proposed to be 65-feet in height and accessory buildings are proposed to be allowed up to 50 ft (vs. 45 ft allowed).
Sound
The primary sources of sound from data centers are HVAC systems. With the site near Highway 52, baseline highway noise exceeds expected facility noise. The site and buildings will be designed to mitigate sound from neighboring properties.
Sound is regulated by the Minnesota Pollution Control Agency (MPCA).
A sound study is required to be submitted to the city at the time of building permit review and must demonstrate that sound levels will not be exceeded.
A noise study is required as part of the PUD approval before issuance of building permits. Mitigation measures include equipment selection, placement, attenuation, screening, berms, and landscaping.
Generators
Yes. Backup generators (currently expected to be diesel-fueled, though alternatives are continually evaluated) will run only during brief maintenance checks or rare emergencies. Their primary purpose is to protect equipment and operations during a grid outage.
Operation and Noise
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Emergency Use: All generators would only run simultaneously in the unlikely event of a full power outage. Under normal conditions, they are not used for daily operations.
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Testing and Maintenance: Generators are tested on a rotating schedule—one unit per building at a time—to ensure reliability. Testing is brief and limited (average ~30 min/day per unit when tested).
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Noise Levels:
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A noise study will be required at the building permit stage to evaluate equipment specifications and placement. This study will include the sound emitted when generators are tested.
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If testing shows potential exceedance at the property line, additional measures (such as acoustical screening, barrier walls, berms, or internal attenuation) will be required.
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Routine testing must comply with Minnesota Pollution Control Agency (MPCA) noise standards (Minn. R. 7030.0010–7030.0080), which set maximum allowable decibel levels based on land use and time of day.
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During a true emergency, MPCA generally does not enforce short-term noise events, but mitigation features are still designed to minimize impact.
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Air Quality
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Generators, currently planned as diesel-fueled, require MPCA air permits.
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Air dispersion modeling will be conducted once exact equipment is specified to ensure compliance with state standards.
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Given limited run times (maintenance plus rare emergencies), overall air quality impacts are expected to be negligible and well within state regulatory standards.
Local Oversight
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All regulatory requirements will be incorporated into design, permitting, and ongoing operations to ensure compliance.
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Lighting
Lighting on-site will be required to meet Cannon Falls lighting regulations and requirements, including shielding, intensity, height, glare, etc. Generally, data centers include site lighting in parking lots and interior roads, security lighting around the site for safety purposes and temporary construction lights. The proposed PUD includes additional lighting standards that are more restrictive than the City Code. All lighting will be addressed during the future site plan applications to ensure consistency with Cannon Falls lighting regulations.
Why Cannon Falls?
The Midwest is a rapidly growing area of our country with increasing online digital needs. Additional data centers are necessary to keep up with demand. The proposed Cannon Falls Technology Park is an ideal site for a vital data center as it is both located in Minnesota and near Dakota Electric transmission lines capable of serving a high-tech facility.
Many types of industrial uses could be developed at the proposed site that would create significantly more disruption—such as increased traffic, noise, or pollution—while generating less tax revenue than a data center campus.
COMMUNITY BENEFITS
JOBS
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Numerous skilled labor jobs from almost all trades.
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250+ well-paying jobs with an average salary of $100,000.
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Some jobs only require a high school diploma or associate’s degree, providing a great opportunity for career growth.
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1 direct data center job can generate 6+ indirect jobs that support the local economy.
TAX REVENUE
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Significant tax dollars for Cannon Falls, Goodhue County, Dakota County, and the local school district over a 20-year period.
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Local communities could use this money to support a wide variety of needs such as education, emergency services, infrastructure, and more.
DO DATA CENTERS MAKE GOOD NEIGHBORS?
YES! Modern data centers are good neighbors, with limited traffic, wide buffers to blend into the community, and advanced technology minimizing their presence in the community.
DATA CENTERS
in Our Daily Lives
Data centers are secure, high-capacity facilities that house the computing systems needed to power modern digital life. Much like roads, utilities, and telecommunications, data centers are critical infrastructure that support the core functions of society and ensure the reliability of the services we use daily. They are essential to critical industries such as health care, emergency services, banking and finance, education, government services, and transportation. Whether it's cloud storage, online shopping, telehealth appointments, video calls, or GPS navigation, data centers ensure these digital tools operate smoothly, securely, and reliably.
Each time you pick up your phone to search the internet, text family and friends, or use social media, you are using a data center. The Cannon Falls Technology Park will play a vital role in supporting the digital needs of the Midwest.
WHO IS TRACT?
Tract builds and operates data centers. Tract’s approach is to develop master-planned data center parks in known high-demand regions. Tract leases space to tech companies, cloud providers, and other enterprise customers.
Tract is a long-term development partner committed to delivering on our plans with responsibility and follow-through.
Tract is responding to strong, well-documented demand driven by growing digital infrastructure needs across the country. Tract is making strategic investments in regions where demand already exists. Our role is to deliver the infrastructure to support that demand—not to create it. We are investing billions of dollars in infrastructure because the demand already exists– we do not create the demand.
Tract’s leadership team includes professionals with decades of experience in developing, designing, and delivering large-scale data center campuses. Collectively, the Tract team has engineered, designed, constructed, and operated over 400 data centers globally for companies including AWS, Google, Microsoft, Meta, and Oracle. Tract currently has eight active data center campuses under construction in four states: Virginia, Nevada, Utah, and Arizona.