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Google picks Pine Island, Minnesota for new data centre and clean energy investment

The technology company has designed a new contract structure to accelerate renewable energy deployment without passing costs to local utility customers

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by Defused News Writer
Google picks Pine Island, Minnesota for new data centre and clean energy investment
Photo by Spencer Bergen / Unsplash

Google has selected Pine Island, Minnesota as the site of a new data centre, announcing the project alongside a clean energy agreement with Xcel Energy intended to add significant renewable capacity to the regional grid.

Under the deal, Xcel's grid will receive an additional 1,400 megawatts of wind power, 200 megawatts of solar and 300 megawatts of iron-air battery storage supplied by Form Energy, a long-duration energy storage company.

Google said it will cover all electricity costs associated with the data centre's service.

The company has also committed $50 million to Xcel's Capacity*Connect Program, a distributed battery initiative designed to increase grid capacity and improve resilience.

To structure the agreement, Google developed a new contract model called the Clean Energy Accelerator Charge, designed to speed clean energy deployment without shifting additional costs to local utility customers, using a framework similar to the Clean Transition Tariff the company previously developed with NV Energy.

Google said the Pine Island project would bring jobs, economic activity and education initiatives to the community and described the site as a testbed for electricity innovation.

The recap

  • Google will build a data center in Pine Island, Minnesota.
  • Agreement adds 1,400 MW wind, 200 MW solar, 300 MW storage.
  • Google commits $50 million to Xcel’s Capacity*Connect Program.
Defused News Writer profile image
by Defused News Writer