Oppidan Investment Withdraws from Planned Data Center Project in North Mankato, Minnesota
December 11, 2025
In a move highlighting the complex regulatory and logistical hurdles facing data center expansion, Minnesota-based real estate developer Oppidan Investment Company has abandoned its plans to build a data center in North Mankato, Minnesota. The decision underscores the challenges developers can face in securing necessary permits, even in regions actively seeking economic development.
According to a report by the Mankato Free Press, Oppidan, which has been developing data centers since 2016, has withdrawn its proposal for the project. Michael Fischer, North Mankato's community development director, confirmed the developer is "no longer interested in North Mankato" and ended discussions several months ago, prior to submitting a formal application. The project had not advanced beyond preliminary talks, and the city never received specific details regarding the facility's proposed size, location, or utility demands.
The primary obstacle cited for the withdrawal was concern over lengthy permitting processes for backup generators, a critical component for data center reliability. Oppidan did not respond to requests for comment on the decision.
While this specific project is canceled, the broader interest in the area for technology infrastructure remains. A recent urban review identified the 679-acre Northport Industrial Park as a potential site for a "technology park." Fischer noted the city is not seeking a hyperscale data center for the park but remains open to smaller-scale facilities, stating, “data centers come in all shapes and sizes. They’re not all hyperscale.” Currently, no active data center proposals are under consideration for the park.
Despite the setback in North Mankato, Oppidan continues to be active in the state and nationally. The firm has ongoing developments in Eagan and Apple Valley, Minnesota, and is pursuing projects across the United States. These include a recently filed 5-megawatt facility in El Paso, Texas, and a 90,000-square-foot data center currently under construction in Chicago, Illinois. Additional projects are located in Reno, Nevada; Temple, Texas; and Albuquerque, New Mexico. The vast majority of Minnesota's existing data center capacity remains concentrated in the Minneapolis metropolitan area, operated by firms such as Cologix, Flexential, and DataBank.
Source: datacenterdynamics
Oppidan Investment Withdraws from Planned Data Center Project in North Mankato, Minnesota
