Twin Cities Economic Resilience: Investment and Growth Amidst Federal Enforcement

Despite recent federal law enforcement activity and associated unrest, the Minneapolis-St. Paul metropolitan area continues to demonstrate robust economic growth, attracting significant investment and job creation. The region remains a competitive hub for diverse industries, from advanced manufacturing to data center technology, and is bolstered by strategic initiatives like the Minnesota Forward Fund.

Record Investment in 2025

2025 marked a record year for both jobs and capital investment in the Minneapolis-St. Paul region, with the highest capital investment recorded by GREATER MSP, the regional economic development organization. The region secured 91 projects, more than double the number in second-place St. Louis (45 projects) and significantly exceeding Baton Rouge (22 projects) and Memphis (20 projects). This success represents a commitment of the most new jobs since 2015.

Key Drivers of Growth

Several factors contributed to this economic success. The $400 million Minnesota Forward Fund, established by the Minnesota Legislature in 2023, played a crucial role in enhancing the state’s competitiveness for companies seeking federal funding. This fund provides a flexible mechanism for closing high-impact projects, such as the expansion of Polar Semiconductor’s fabrication facility in 2024 and investments from BioMADE and North Wind in 2025.

BioMADE and Hypersonics Research

BioMADE, a U.S. Department of Defense-sponsored Manufacturing Innovation Institute headquartered in Minneapolis, invested $132 million in Maple Grove for a demonstration-scale biomanufacturing facility. This facility will support companies scaling up the production of bio-based materials using precision fermentation technology. North Wind is collaborating with the University of Minnesota and the State of Minnesota, utilizing Forward Fund support, to develop an advanced aerospace research and development and testing facility focused on hypersonics at UMore Park in Rosemount, representing a $1.1 billion investment.

Workforce Development

The Minnesota Forward program also allocated funding for semiconductor workforce development, with awards granted to Hennepin Technical College, the University of Minnesota, and the University of St. Thomas.

Industry Diversity and the Data Center Supply Chain

The Minneapolis-St. Paul region boasts a diverse industrial base, with leadership positions in medical and health technology, next-generation food and agriculture, clean technology, and compute technology (including semiconductors and hypersonics). This legacy in sectors like supercomputing and medical devices has created a strong foundation in electromechanical capabilities, enabling existing companies to successfully pivot and serve the growing data center supply chain. Examples include Daikin’s R&D test lab for data center cooling systems, Rolls-Royce’s backup generators in Mankato, and nVent’s advanced liquid cooling and enclosure solutions.

Water Technology and Data Center Growth

Leadership in water technology further supports data center supply chain growth. Companies like Ecolab (headquartered in St. Paul) and Uponor/GF (headquartered in Apple Valley) are experiencing growth in providing data center water cooling technologies and flow solutions.

Community and Employer Response to Federal Enforcement

Recent federal law enforcement actions have been disruptive and concerning for many in the community, particularly immigrant families and minor business owners. Employers across the region have responded with support, contributing to relief efforts, backing stabilization funds, and partnering with community organizations. This support has largely been provided quietly but consistently.

Continued Investment Despite Instability

Despite the recent instability, the flow of new business expansion and attraction projects has remained steady. GREATER MSP CEO Peter Frosch reported no slowdown in interest or focus from active projects considering the region for growth. The organization is actively building global partnerships to reinforce the message that the Minneapolis-St. Paul region and Minnesota are strong partners for international investment. Numerous companies worldwide have expressed support and reaffirmed their interest in future investment.

The Mississippi River’s Role in Industrial Activity

The Mississippi River plays a vital role in facilitating trade and providing a competitive advantage for industries in the region. Damon Judd, CEO of Marquette Transportation Company, highlighted the river’s extensive navigable waterway system – larger than all other navigable waterways globally combined – as a key artery for trade and a driver of reshoring initiatives. The river facilitates the transportation of raw materials and finished products, supporting industries like steel milling (e.g., facilities in Blytheville, Arkansas) and large-scale projects like Amazon’s $10 billion data center complex in Tallulah, Mississippi.