U.S. Bank Breaks Ground on $250M Data Center
Construction officially kicked off this week on a $250 million data center being built in Chaska for Minneapolis-based U.S. Bank.
Stream Data Centers, a data center developer out of Dallas, is leading the build out of the 56,000-square-foot facility. Work on the single-story structure is expected to wrap at the end of the year.
Once it is up and running, the data center will employ 18 full-time workers, U.S. Bank said.
“The Twin Cities are rapidly becoming a major national data center market,” said Rob Kennedy, co-managing partner of Stream Data Centers.
Since 2012, more than 25 new or refurbished data centers have opened in Minnesota, according to the state’s Department of Employment and Economic Development (DEED). Those projects made up more than $2 billion in capital investments.
Chaska specifically has been a hotspot for data centers. A few unique aspects to the city are its private electric utility, fiber optic network and incentive programs.
Back in December when U.S. Bank announced its data center plan, Chaska said it would provide a tax abatement valued at nearly $548,000 over 20 years to support the project. Additionally, the city said it was working with Greater MSP and DEED to secure a $250,000 grant for infrastructure improvements at the electric substation directly serving the data center.
U.S. Bank’s data center will open across the street from a data center owned by the largest company based out of Minnesota: UnitedHealth Group.