Google has announced plans to build a large data center in Pine Island, Minnesota, just north of Rochester.
According to a press release, the company says they'll partner with Minnesota-based Xcel Energy to build out new clean energy projects, and pay all costs associated with the electric service they use.
Many communities around the country have pushed back on the large data centers used to power the internet due to their noise and the significant amount of energy and water they use.
However, the President of Xcel Energy Minnesota, North and South Dakota, Bira Shey, calls the agreement a model for partnerships that fullfills and protects its goals for a carbon-free future, with significant investments from Google to add new, clean energy to the grid.
“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 Shea. “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, Google will provide $50 million to bolster Xcel’s Capacity Connect Program which is designed to put a distributed network of smaller batteries across Xcel’s system, increasing capacity and improving grid resilience.
“Our commitment to Minnesota goes beyond building infrastructure; it’s about being a responsible partner, neighbor, and a good citizen of the grid,” said Amanda Peterson Corio, head of Data Center Energy at Google. “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.”
The Minnesota Public Utilities Commission will still have to sign off on the deal.
Xcel says they'll file the plans in the next few weeks.