Google has reached a strategic agreement with Xcel Energy to power its new data center in Pine Island, Minnesota, using clean energy. This center, key to expanding artificial intelligence infrastructure and cloud services, will operate without imposing additional costs on current power grid users.
Google will cover the cost of the electricity supply
Minneapolis-based Xcel Energy has stated that Google will fully cover the costs of the data center’s electricity supply. This contract model aims to protect residential and commercial customers from rate increases driven by large energy loads. The Minnesota Public Utilities Commission will soon review the Electric Service Agreement for approval.
As part of the agreement, an additional 1,900 megawatts (MW) of clean energy will be added to the grid: 1,400 MW of wind power, 200 MW of solar, and 300 MW through an iron-air battery system developed by Form Energy. These batteries will store energy for 100 hours, providing backup during periods of high demand.
Data center with clean energy and a strengthened grid
The investment also includes $50 million in grid infrastructure through the Capacity*Connect program, aimed at strengthening system reliability. The collaboration between the two companies positions Minnesota as a benchmark for integrating data centers with renewable energy solutions.
This rollout brings economic benefits to the region, such as jobs, investment in communities, and a more resilient energy system. It also reinforces Google’s commitment to sustainability in all the territories where it operates.
Google and Xcel Energy are building a model that could be replicated in future technology and clean energy projects in other regions of the country.
Source: Xcel Energy
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