Property tax values, city revenue, and equipment exemptions for Woodbury data centers
Data centers generate property tax revenue based on building value (assessed by county assessor). Equipment (servers, chillers, generators) worth tens of millions is exempt from the property tax roll in Minnesota, reducing the tax base significantly.
Key Finding: Combined city tax contribution from both facilities is approximately $118,000/year—equivalent to 20–25 median Woodbury homes and 0.23% of the city's $52.1M total levy. Meanwhile, 500 Bielenberg's assessed value dropped 7% ($725K) during the 30 MW build-out year.
| Year | Total EMV | Change | Tax Capacity* | Annual Tax |
|---|---|---|---|---|
| 2022 | $4,947,000 | — | $98,190 | ~$137,800 |
| 2023 | $5,342,800 | +$395,800 | $106,106 | ~$149,000 |
| 2024 | $6,679,800 | +$1,337,000 | $132,846 | ~$186,200 |
| 2025 | $6,642,200 | −$37,600 | $132,094 | ~$185,000 |
| 2026 | $6,642,200 | $0 | $132,094 | ~$185,874 |
| 2027 (prelim.) | $7,125,200 | +$483,000 | $141,754 | ~$191,764 |
* Tax capacity = EMV × state class rate. City's direct share (31.16% of tax capacity) is approximately $44,000/year.
| Year | Total EMV | Change | Tax Capacity* | Annual Tax |
|---|---|---|---|---|
| 2022 | $19,939,600 | — | $398,042 | ~$559,000 |
| 2023 | $18,160,500 | −$1,779,100 | $362,460 | ~$508,000 |
| 2024 | $17,470,400 | −$690,100 | $348,658 | ~$488,000 |
| 2025 | $12,321,900 | −$5,148,500 | $245,688 | ~$344,000 |
| 2026 | $12,321,900 | $0 | $245,688 | ~$359,842 |
| 2027 (prelim.) | $11,597,100 | −$724,800 (−5.9%) | $231,192 | ~$357,170 |
* Split occurred in 2025 when Main Event Bowling purchased Lot 2. 2027 figures are Lot 4 only (data center building).
| Metric | Value |
|---|---|
| Woodbury total city levy (2025) | $52.1 million |
| Data center city tax contribution | ~$118,000 |
| Percentage of levy | 0.23% |
| Equivalent number of median homes | 20–25 homes |
In Minnesota, servers, chillers, generators, and power systems (personal property) are exempt from property tax. Only the building shell counts.
| Equipment Type | Estimated Value per MW | 15 MW Facility | 6 MW Facility |
|---|---|---|---|
| Servers & data hall hardware | $3–5M | $45–75M | $18–30M |
| Cooling system (chillers) | $500K–1M | $7.5–15M | $3–6M |
| Power systems (generators, UPS) | $500K–1M | $7.5–15M | $3–6M |
| Electrical & distribution | $200–500K | $3–7.5M | $1.2–3M |
| Total exempt equipment per facility | ~$63–113M | ~$25–45M | |
If both facilities expand to full marketed capacity:
| Facility | Capacity | Equipment Value (est.) | Tax Contribution if Built |
|---|---|---|---|
| 401 Bielenberg | 66 MW | ~$200–330M | ~$153,000/year (est.) |
| 500 Bielenberg | 34 MW | ~$100–170M | ~$80,000/year (est.) |
| Combined | 100 MW | ~$300–500M | ~$233,000/year |
| Metric | 2014 (Hartford Era) | 2027 (Data Center Proposed) | Change |
|---|---|---|---|
| Tax capacity (total campus) | $406,138 | ~$372,946 | −$33,192 (−8.2%) |
| Rank (city taxpayers) | #8 (largest) | ~#10 (proposed) | Dropped 2 spots |
| Employees on site | ~400 | ~10 (data center ops only) | −390 jobs |
| Use type | Office / Insurance | Data center + Topgolf/Main Event | Transformed |
The Mystery: 500 Bielenberg's assessed value dropped 7% ($725K) between 2025 and 2026 assessments—the exact year Eden Ventures was marketing 30 MW of expansion capacity and commissioning equipment.
April 30, 2027: Operator has one year from 2026 assessment to petition Tax Court if they dispute the value. If no petition is filed, the 7% drop stands as assessor's final decision.
Data centers are priced by capacity, not by property value. Industry standard: ~$12,400–15,000 per megawatt in annual tax.
| Facility | Live Capacity | Annual Tax | Per-MW Tax |
|---|---|---|---|
| 401 Bielenberg | 15 MW | ~$185,874 | ~$12,391/MW |
| 500 Bielenberg (2026) | 6 MW | ~$359,842 | ~$59,974/MW |
| Combined Average | 21 MW | ~$545,716 | ~$25,987/MW |
1. Assessment Methodology: How does the county assessor value data center buildings? Are servers and equipment value captured in building assessment, or are they assumed exempt and reflected in lower building value?
2. 500 Bielenberg Value Drop: Why did 500 Bielenberg's assessed value drop $725K (7%) between 2025 and 2026 assessments during the exact year Eden Ventures was building out 30 MW? Will the city request an assessor explanation?
3. Tax Court Petition: Will city monitor Tax Court docket after April 30, 2027 to see if Eden Ventures or Woodbury Capital petition the 2026 assessments?
4. Future Capacity Tax Impact: If both facilities expand to 66 MW + 34 MW (100 MW total), what is the projected city tax contribution? How much of that comes from building value vs. equipment value (if any)?
5. Cost-Benefit: Given that 100 MW of data center capacity would contribute only ~0.4% of city levy, how does this compare to the utility cost shift, noise impact, and water/sewer strain on residents?
Washington County Assessor Data — MetroGIS Regional Parcel Dataset (2021–2026 assessments)
Woodbury ACFR 2025 — Annual Comprehensive Financial Report; Table 7 (tax rates), Table 8 (historic tax capacity rankings)
Minnesota Property Tax Law — Personal property exemption for equipment (Minn. Stat. § 272B)
Tax Court Public Docket — mn.gov/tax-court (monitor after April 30, 2027)
Eden Ventures Purchase — eCRV 1651176 ($17.5M, July 2023)
Data Center Industry Benchmarks — ~$12.4K–15K per megawatt annual tax (verified against Twin Cities market comparables)