Witnesses on the scene report a Republic Services garbage truck is billowing smoke and flames on the east side of the County Road 101 and Stagecoach Road intersection.
The Shakopee Fire Department received a call about the burning truck just before 11:30 a.m., on Tuesday.
Fire Marshal Tom Pitschneider said the garbage truck was fueled with compressed natural gas, and that the tanks were "venting" when emergency services arrived.
"The fire started in the compactor area of the truck and was most likely caused by hot materials that had recently been picked up," Pitschneider said.
Pitschneider said the truck had "significant damage."