Minnesota $392 Milllion Broadband Expansions

How Broadband is Powering Farms, Businesses, and Rural Communities

These are exciting times for Redhead Creamery, an artisanal cheese producer in central Minnesota. Known for inventive cheeses, the family-run farm north of Brooten recently launched a line of spirits distilled from whey, a cheese-making byproduct. Their creations now include vodka, bourbon, and gin. “It’s full circle—crops to cows to cheese to cocktails,” jokes co-owner and cheesemaker Alise Sjostrom.

But nearly as important to the farm’s future as spirits and cheese is something less tangible: broadband. For years, Redhead Creamery relied on satellite internet, vulnerable to storms and even wildfire smoke. This summer, Runestone Telecom is finally delivering fiber lines to the farm, bringing faster, more reliable connectivity.

That upgrade is more than a convenience. Redhead’s robotic milking equipment depends on internet uptime. If the network fails, so do the machines—a disaster for the cows. Like thousands of rural businesses, Redhead depends on broadband to stay modern and competitive.

Minnesota’s Broadband Push

Since 2013, Minnesota has worked to extend high-speed internet “border to border.” The state’s Office of Broadband Development, created that year, has distributed more than $400 million in grants to internet service providers (ISPs), fueling 10 rounds of expansion projects. These grants typically cover up to half of construction costs, helping ISPs serve sparsely populated areas where the business case alone falls short.

Projects must deliver at least 100/25 Mbps speeds, scalable to 100/100. In especially high-cost areas, the state has funded up to 75% of construction. Together, these efforts have connected nearly 120,000 homes and businesses.

The office also piloted a line-extension program for households just beyond existing fiber routes—a popular initiative that quickly ran out of funding.

Federal Funding and BEAD

Minnesota’s next phase hinges on federal support. In 2023, the state was awarded $652 million under the Broadband Equity, Access, and Deployment (BEAD) program. But shifting federal rules under the Trump administration reduced the immediate allocation to $392 million, limiting fiber’s share of the funds.

Despite the setback, officials expect BEAD to connect more than 75,000 unserved or underserved locations, where speeds remain under 25/3 Mbps. Construction could begin as early as 2026, depending on the bidding process.

The need is still vast. Roughly 300,000 Minnesotans—out of 5.8 million—lack access to reliable broadband at 100/20 Mbps or better.

The Digital Divide

The pandemic made broadband’s importance undeniable. “Since Covid, we’ve seen a dramatic rise in network traffic,” says Comcast’s Jill Hornbacher. The average home now has 36 connected devices, and streaming—especially live sports—drives 70% of usage.

Consultant Ann Treacy, who tracks broadband progress county by county, notes that Covid also reset expectations. “For years, 25/3 felt ‘good enough.’ You could email or stream Netflix. But with kids learning online and people working from home, it wasn’t.”

Some counties, like Beltrami, are ahead thanks to local providers such as Paul Bunyan Communications. Others lag far behind. “Schools, businesses, health care—all assume a certain level of technology now,” Treacy says. “If you don’t have it, you’re sunk.”

Rural Providers Step Up

Many rural providers are tackling the challenge head-on. East Central Energy (ECE), an electric cooperative serving 4,500 square miles, launched broadband in 2021 after hearing about BEAD. With $38 million in funding secured so far, it plans to invest $300 million overall to connect 30,000 members.

ECE’s fiber network offers speeds from 100/100 Mbps to 2/2 Gbps. The co-op often absorbs connection costs that can reach $15,000 per rural home. “Funding was what put us over the top,” says ECE CIO Ty Houglum.

Perham-based Arvig is another active player, expanding fiber in communities such as Walker and Melrose, while also serving parts of the Twin Cities.

Broadband in the Twin Cities

While rural gaps dominate headlines, demand in the Twin Cities is also surging. Comcast has invested more than $525 million in Minnesota over the past three years, completing fiber rollouts in 10 metro-area cities, with more underway. New competitors like Gateway Fiber and Metronet are further fueling expansion.

Though metro projects rarely rely on state funding, they underscore how broadband is now an essential utility, not a luxury.

Why Broadband Matter

Broadband’s value transcends politics. “This is a very nonpartisan issue,” says Bree Maki, executive director of Minnesota’s Office of Broadband Development. “It’s important for our ag community, for education, for access to government benefits.”

Reliable broadband also drives economic development, attracting businesses and enabling innovation across industries.

For Alise Sjostrom and her family at Redhead Creamery, the benefits will be immediate: more stable operations, better customer outreach, and peace of mind for the cows. Across Minnesota, thousands of others are waiting for the same upgrade—an essential connection to the future.

More on BEAD and Broadband

• More of our recent stories about BEAD and public broadband programs
• For up-to-date information on the $42 billion BEAD Program, check Brander Group’s BEAD funding progress dashboard
• Minnesota Moves Forward with $652 Million BEAD Funds
• New York’s $290 Million Internet Investment
• Minnesota Moves Forward with $652 Million BEAD Funds
• South Carolina Broadband Access Progress