Google to build Minnesota data center with Xcel Energy

Google has announced plans to build a data center in Pine Island, Minnesota, in partnership with Xcel Energy to support local energy goals.

The project aims to create jobs and promote economic growth in the community.

Xcel Energy will supply power to the new facility, with Google covering all associated electricity costs.

The companies have designed a contract called the Clean Energy Accelerator Charge (CEAC), which is similar to a model used with NV Energy, to promote clean energy deployment without increasing costs for local customers.

The agreement includes adding 1,400 MW of wind, 200 MW of solar, and 300 MW of iron-air battery storage from Form Energy to the grid.

Additionally, Google will invest US$50 million in Xcel’s Capacity Connect Program, which supports distributed battery projects to enhance grid capacity and resilience.

The initiative aims to advance energy innovation and support a cleaner energy future for the community.

🔗 Source: Google

🧠 Food for thought

Implications, context, and why it matters.

This Minnesota data center is Google’s second try and draws local pushback

Google backed away from a planned $600 million data center in Becker, Minnesota, in 2022 after years of talks 1.
In Pine Island, the Minnesota Center for Environmental Advocacy filed a lawsuit against the project 2.
Some towns fight data centers over heavy power use, high water demand, or noise 3.
Pine Island still approved the plan plus a $36 million tax abatement 2.

Google is testing a new way to fund clean power for the AI boom

Google’s Clean Energy Accelerator Charge (CEAC) is a repeatable pricing model, first built with NV Energy 4.
Xcel Energy will serve the site, and Google will pay all electricity charges tied to its service 5.
Google will also pay for new grid infrastructure so local customers avoid higher rates 5.
The deal adds 1,400 MW of wind, 200 MW of solar, and 300 MW of iron-air battery storage from Form Energy 5.
Xcel Energy called it the largest battery project announced so far by gigawatt-hour energy capacity, a 300 MW (30 GWh) iron-air system 5.
Form Energy says the battery can provide 100+ hours of storage 1.
Google will invest $50 million in Xcel’s Capacity Connect Program for distributed battery projects that boost grid capacity and resilience.