Key Points:
- Google will build a data center on 480 acres in Pine Island, Minnesota.
- The company plans to add wind, solar, and battery storage to the local grid.
- Google promises to pay for all electricity and infrastructure costs to protect ratepayers.
- The city council approved tax incentives, hoping for $130 million in future revenue.
Alphabet’s Google officially announced plans on Tuesday to build its first data center in Minnesota. The tech giant has selected a 480-acre site in Pine Island, a small town located about 70 miles southeast of Minneapolis. This new facility will support Google’s growing cloud business and power its demanding artificial intelligence applications.
To power this massive project, Google entered into an agreement with local utility provider Xcel Energy. The deal involves deploying a significant amount of renewable energy. Google intends to add 1,400 megawatts of wind power, 200 megawatts of solar energy, and 300 megawatts of battery storage to the grid. Xcel Energy will own these renewable projects, which are expected to go online between 2028 and 2029.
Google is trying to address fears that data centers drive up electricity bills for regular people. Amanda Peterson Corio, Google’s head of data center energy, stated that the company will cover 100 percent of its energy and infrastructure costs. She emphasized that they want to ensure they do not add costs to other ratepayers. Google even agreed to pay for new transmission lines regardless of whether the data center is ultimately finished.
Despite these promises, the project faces local pushback. Residents formed a group called “Stop the Pine Island Data Center,” and the Minnesota Center for Environmental Advocacy filed a lawsuit last October challenging the environmental review process. Critics worry about the facility’s heavy water usage and potential impact on the local environment.
However, local officials see a financial upside. The Pine Island City Council approved preliminary plans and a tax abatement package worth $36 million. City Administrator Elizabeth Howard estimates the project could eventually generate over $130 million in tax revenue for the town.
The agreement between Google and Xcel still needs final approval from the Minnesota Public Utility Commission. While Minnesota hasn’t historically been a major hub for tech infrastructure, companies are increasingly looking there as other markets like Virginia become crowded.
