Google Teams Up with Xcel Energy for Minnesota Data Center Power Deal

Google has struck a partnership with Xcel Energy to supply electricity for a new data center facility in Minnesota. The agreement will bring nearly 2,000 megawatts of renewable energy to the power grid without increasing costs for current customers.

Xcel Energy announced Tuesday that it has formed a partnership with tech giant Google to supply electricity for the company’s upcoming data center facility in Pine Island, Minnesota, while adding 1,900 megawatts of renewable energy capacity to the electrical grid.

The nation’s electricity usage is projected to surge dramatically over the coming years, fueled by the expansion of data centers supporting artificial intelligence and cryptocurrency operations, along with growing adoption of electric heating systems and vehicles in residential and commercial settings.

In response to this growing energy demand, utility companies nationwide have committed billions in investments to modernize America’s electrical infrastructure, though these upgrades have sparked worries about potential rate increases for consumers.

According to Xcel, the Minnesota project will not burden existing ratepayers with additional costs, as Google will cover all expenses related to its new electrical service in accordance with state regulatory and legislative guidelines for major energy users.

The utility company detailed that the initiative will bring 1,400 MW of additional wind power generation, 200 MW of solar energy capacity, and 300 MW of extended-duration battery storage systems. The project also includes a $50 million commitment to Xcel’s Capacity*Connect initiative.

Google, owned by parent company Alphabet, has been aggressively pursuing power supply agreements to support its expanding network of data centers nationwide.

On the same day, AES Corp announced a two-decade power supply contract with Google for a planned data center facility in Wilbarger County, Texas.

Just last week, renewable energy firm Ormat Technologies revealed it had secured a long-term geothermal energy agreement with NV Energy to support Google’s Nevada operations.