Google selected a 480-acre site in Pine Island, Minnesota, for its first data center in the state and signed a Clean Energy Accelerator Charge contract with Xcel Energy. Under this arrangement, Google assumes all electric service costs, ensuring that local residential and commercial customers experience no rate increases.

The agreement mandates the addition of 1,400 MW of wind, 200 MW of solar and 300 MW of iron-air battery storage from Form Energy to Xcel’s grid. This balanced clean energy mix is designed to meet the high-power demands of AI workloads and cloud operations while enhancing grid resilience.

Google will invest $50 million in Xcel’s Capacity Connect program, which deploys distributed battery systems to bolster local grid capacity. The long-term power service contract secures predictable revenue streams for Xcel and underwrites the capital expenses of the new generation assets.

Local approval included a $36 million tax abatement for Google and projects over $130 million in future tax revenue, despite opposition from community activists and a pending environmental lawsuit. Minnesota’s data center count will rise beyond its current 74 facilities, reflecting growing tech-sector interest.