Xcel Energy will power a new Google data center in Pine Island, Minnesota, with clean energy that will support core services including Workspace, Search, YouTube, and Maps.
The data center and associated Electric Service Agreement is expected to boost the state’s economy through the buildout of new clean energy projects that will contribute to Minnesota’s clean energy goals.
To prevent increased energy costs for Xcel’s customers, Google has agreed to pay all costs for its new services in line with its typical practices, as well as Minnesota’s regulatory and legislative requirements for large loads.
“Data centers are the backbone of the 21st century economy, and we’re excited to work with Google to advance the prosperity of our region and ensure our current customers benefit,” said Bria Shea, president of Xcel Energy–Minnesota, North Dakota and South Dakota, in a statement. “This unique agreement is a model for data center partnerships in that it fulfills and protects Minnesota’s goals for a carbon-free future and drives investment deep into our communities — all while ensuring our current customers are not paying more for this growing demand.”
As part of the agreement, Xcel and Google will bring 1,900 megawatts (MW) of new clean energy to the grid, with Google covering any new grid infrastructure costs associated with the project.
A Clean Energy Accelerator Charge (CEAC), a specialized utility contract structure, will provide for 1,400 MW of wind, 200 MW of solar, and 300 MW of long-duration energy storage, along with a $50 million investment toward Xcel’s Capacity*Connect Program, which will help with grid reliability.
The clean energy resources funded through the agreement include a 300-MW Form Energy iron-air battery system installation — the largest battery project by gigawatt-hour energy capacity in the world. The 100-hour battery system will store energy during high production periods and dispatch it to the grid during peak demand.
Amanda Peterson Corio, head of Data Center Energy at Google, added, “This agreement supports our goal of expanding AI and cloud capabilities in a way that provides long-term value to the places we operate. By integrating new carbon-free energy and pioneering long-duration storage with Xcel Energy, we are helping to build a more resilient system that benefits the entire community.”
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