Are you asking why trees form knots? I'll assume you are. When a tree limb dies off the tree grows up around the area and thus forms a type of scar - the knot.
Frequently plants develop galls (woody growths) as a response to insect or fungal attack. I can't identify the tree in question so you'll need to check it out yourself. Although the growths are on the trunk of the tree I suspect that they are growing on twigs that would be forming on the trunk at these points.
Another answer is that plants can develop conditions like 'corkiness' or just abnormal growth. If the overall health of the tree is good then I would probably just ignore it - removing the whole tree is only recommended if there is an infestation that could spread or the damage to the tree is making it dangerous (dropping limbs).
Francis - a snow-tolerant acacia? Don't think so - I first picked it as a poplar - plenty of those are able to cope with winters in Nth Dakota. I'd then pick a Gleditsia.... again they are not bothered by extreme cold.
Fill me in F-man. I know that the majority of Acacia sp. are Australian natives. The rest are either African (up as far as Egypt) and there are some central American species. I am just probably more used to wattles remaining as a shrub or a low, wide-spreading tree....
Curiously enough - the problem resolves itself. Acacias are notoriously short-lived - 15 years is about the average for a garden plant in Eastern Australia.