Xcel Energy-Google deal adds 1,900 MW clean energy and 30 GWh storage

Xcel Energy has signed an agreement to supply electricity to a new Google data centre in Pine Island, Minnesota, alongside a 1,900 MW expansion of clean energy capacity and deployment of a large long-duration battery system. The Electric Service Agreement will be filed with the Minnesota Public Utilities Commission for approval.

Under the agreement, Google will fund all grid infrastructure linked to the project. The arrangement is structured so existing customers do not bear additional costs while supporting integration of new renewable generation.

The project includes a Clean Energy Accelerator Charge to add 1,400 MW of wind, 200 MW of solar, and 300 MW of long-duration energy storage. It also includes a USD 50 million investment in Xcel Energy’s Capacity Connect Program to strengthen grid reliability.

The storage component involves a 300 MW (30 GWh) iron-air battery system supplied by Form Energy. The 100-hour system is designed to store excess renewable generation and deliver multi-day firm capacity during periods of peak demand.

The new resources will support Xcel Energy’s transition beyond its current power mix, which already includes about 70 % carbon-free electricity, and contribute to Minnesota’s clean energy targets.

Xcel Energy stated that large new loads under the agreement will not increase costs for existing customers, as Google will cover all service-related expenses in line with regulatory requirements. Over the past five years, average residential electricity bills in Minnesota have remained 27% below the US national average, with annual increases of about 1.55% since 2013.

The data centre will support Google services including Workspace, Search, YouTube, and Maps. The agreement remains subject to approval by the Minnesota Public Utilities Commission.

The featured photograph is for representation only.