Monticello Data Center / Project Groundhog, Monticello, Minnesota

Monticello's first formal data center decision is coming: the city lists Monticello Tech's technology campus, known as Project Groundhog, as an applicant under consideration, with a public hearing scheduled for Tuesday, October 6. Monticello Tech LLC, run by Nick Frattalone, chief executive of the commercial developer Frattalone Companies, is proposing a data center campus called Project Groundhog on about 550 acres east of Highway 25 and south of 85th Street, inside Monticello's orderly annexation area, in Wright County, Minnesota. About a tenth of the land would be built on, with the rest kept as buffers and infrastructure. Three large technology companies are being considered as tenants under nondisclosure agreements, and none has been chosen.

The power question was still open in January: Monticello Tech applied to Xcel Energy for a study in June 2024 and was waiting on the results, and Frattalone said a data center is developed on "how much power is available and when." No cost figure has been given, and the company says nothing will be developed in 2026, with construction no earlier than the second quarter of 2027.

About 100 residents came to an open house on January 7 and left without much. Nancy Friesen said: "I was hoping to get some answers, but any questions I've heard, I've only heard 'I don't know' from the people presenting." Jenna Van Den Boom made the same point differently: "Depending on who it ends up being, this could look very different."

On April 27, 2026 the city council voted 4 to 1 to adopt a data center ordinance that opens the door to such projects while adding restrictions. A developer must first get the land rezoned and then apply for a conditional use permit, show there is enough water and energy, and meet standards for buffers, screening, noise and lighting; the city will not offer tax incentives, and developers must pay for any new infrastructure. Council member Tracy Hinz called it "one of the best, most well-framed ordinances in our state, if not broader," while residents at the hearings warned about property values, water and electricity, and constant noise.

The next step is the city's public hearing on October 6, and under the new ordinance the land would then need rezoning and a conditional use permit from the city.