Google Announces Pine Island Data Center and Landmark 1.9GW Minnesota Clean Energy Deal

Google has officially designated Pine Island, Minnesota, as the future home of its latest data center facility. This development follows a historic agreement with Xcel Energy to integrate 1.9 gigawatts of new clean energy into the regional power grid. The project aims to support the massive energy requirements of modern artificial intelligence while maintaining strict sustainability standards. This initiative effectively ends years of speculation surrounding the local site formerly known as Elk Run.

Strategic Energy Infrastructure

The energy agreement includes 1,400 megawatts of wind power and 200 megawatts of solar capacity. A standout feature of the deal is the deployment of a 300-megawatt iron-air battery system from Form Energy. Unlike standard lithium-ion batteries that provide only a few hours of backup, these iron-air systems can store energy for up to 100 hours. This capability allows the data center to operate on carbon-free energy even during extended periods of low wind or sun.

Innovative Regulatory Framework

To manage the financial impact on the community, Google and Xcel Energy designed the Clean Energy Accelerator Charge (CEAC). This specific tariff ensures that Google pays for the full capital expenditure of the new infrastructure and grid upgrades. This structure prevents cost shifting to local residential or small business customers in Minnesota. It follows a similar successful model previously established by Google in Nevada to accelerate clean energy deployment.

Supporting Grid Resilience

The investment also extends beyond the Pine Island facility to benefit the broader regional grid. Google is contributing 50 million dollars to the Capacity Connect program managed by Xcel Energy. This funding will support a network of smaller, distributed batteries at various industrial and business sites. These distributed resources create a virtual power plant that improves resilience and capacity for all utility customers in the state.

Economic and Community Impact

Located along Highway 52 north of Rochester, the project revitalizes a site that has been vacant for nearly two decades. Local leaders expect the data center to generate high-quality jobs and significant tax revenue for the area. By combining infrastructure growth with massive renewable investment, Google is setting a new standard for how technology companies expand. This balanced approach ensures that digital innovation does not come at the expense of local environmental goals according to official statements.