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Google to build data center in Minnesota with new solar, wind power and battery storage
CNBC· 2026-02-24 14:00
Core Insights - Google is establishing its first data center in Minnesota, which will focus on artificial intelligence and cloud services, in collaboration with utility Xcel [1][2] Group 1: Project Details - The data center will be situated on a 480-acre site in Pine Island, approximately 70 miles southeast of Minneapolis, in a town with a population of around 4,000 [2] - The facility has faced community opposition but has received support from the city council, and construction has not yet commenced [3] - Google has not disclosed the expected electricity consumption for the data center but will cover all associated electric grid infrastructure costs [4] Group 2: Renewable Energy Commitment - Under the agreement with Xcel, Google will contribute 1,400 megawatts of wind power, 200 megawatts of solar power, and 300 megawatts of battery storage to the grid, with these renewable projects expected to be operational by 2028 and 2029 [6] - Google will pay a premium for renewable energy to mitigate infrastructure costs for consumers while promoting clean energy deployment in Minnesota [6] Group 3: Financial Implications - Pine Island is projected to generate over $130 million in tax revenue from the data center project [8] - The city council approved financial incentives, including a $36 million tax abatement, to support the development [7] Group 4: Market Context - Minnesota has not historically been a major data center market, with only 74 existing facilities compared to Virginia's 570, the largest market globally [8]