Prime Highlights
- Google will construct its first data center in Pine Island, Minnesota, supporting artificial intelligence and cloud operations.
- The company plans to add 1,900 megawatts of new renewable energy to the state’s grid, including wind, solar, and battery storage.
Key Facts
- The data center will be built on a 480-acre site, with Xcel Energy owning the renewable projects expected to operate between 2028 and 2029.
- Pine Island city officials approved preliminary development plans with a $36 million tax abatement, potentially generating over $130 million in tax revenue.
Background
Google will build its first data center in Minnesota and add large-scale renewable power to the state under a new agreement with Xcel Energy. The project will rise on a 480-acre site in Pine Island, a town about 70 miles southeast of Minneapolis, and will support artificial intelligence and cloud operations.
The company will bring 1,900 megawatts of new clean energy to the grid, including wind, solar, and battery storage. Xcel will own the renewable projects, which are expected to start operating between 2028 and 2029. Google said it will pay a premium tariff for the power and cover all electricity and grid infrastructure costs tied to the facility.
State regulators must still review the energy agreement. Additional transmission lines will be required, and Google has committed to fund them even if the data center does not move forward.
Local reaction remains divided. Pine Island’s city council approved preliminary development plans and financial incentives, including a $36 million tax abatement. City officials estimate the project could generate more than $130 million in tax revenue. However, a residents’ group, Stop the Pine Island Data Center, has formed to oppose the plan, and the Minnesota Center for Environmental Advocacy has filed a lawsuit challenging the environmental review.
The proposed facility has not yet begun construction. Google has not disclosed its expected electricity use, though data centers typically require large amounts of power and water for cooling. Across the United States, similar projects have drawn political scrutiny over energy demand, rising utility costs, and environmental impact.
Minnesota has not been a major data center hub, with 74 facilities currently in operation. By comparison, Virginia, the world’s largest market, hosts about 570 sites, according to industry data.
Google said its investment will add new generating capacity rather than strain existing supply. Company officials stated the goal is to avoid shifting costs to other ratepayers while accelerating clean energy deployment in the state.