Google Brings 1,900 MW Clean Energy to Minnesota

A small Minnesota town is about to get a major clean energy boost, and local families won't pay a penny extra for it.

Google announced it will build its first data center in Pine Island, Minnesota, while adding 1,900 megawatts of wind, solar, and battery storage to the state's power grid. That's enough renewable energy to power roughly 570,000 homes.

The Pine Island facility will sit on 480 acres in a town of 4,000 people, about 70 miles southeast of Minneapolis. It will power artificial intelligence applications and Google's cloud services.

Here's what makes this project different: Google is paying for 100% of the infrastructure costs. Any new transmission lines, grid upgrades, or equipment needed for the data center comes from Google's budget, not local utility bills.

"What Google is doing is ensuring that when we show up, we aren't putting additional costs on other ratepayers," said Amanda Peterson Corio, Google's head of data center energy. "We will pay 100% of our energy and electricity costs."

The renewable energy includes 1,400 megawatts of wind power, 200 megawatts of solar, and 300 megawatts of battery storage. Utility company Xcel will own these projects, which are expected to come online in 2028 and 2029.

The project faced pushback from some residents worried about rising electricity costs and environmental impacts. Data centers nationwide have drawn criticism for driving up local energy prices and consuming significant water for cooling.

The Ripple Effect

This agreement creates a new model for how tech companies can expand without burdening communities. By paying infrastructure costs upfront and adding renewable energy to the grid, Google ensures other customers benefit from cleaner power without price increases.

Pine Island's city council approved the project in December, along with $36 million in tax abatements. The town expects to collect over $130 million in tax revenue from the facility.

Minnesota has 74 data centers currently, compared to 570 in Virginia, the world's largest data center market. The state is becoming increasingly attractive to tech companies looking to expand while minimizing their environmental footprint.

The Minnesota Public Utility Commission still needs to review the agreement between Google and Xcel. If approved, it could set a precedent for future data center projects across the country.

One town in Minnesota is proving that economic growth and environmental responsibility can power the same future.