Tech

Google to Build Minnesota Data Center With 1,900 MW of Renewables

Google is set to build its first Minnesota data center in Pine Island, backed by a 1,900 MW package of wind, solar, and battery storage from Xcel Energy. The project, still subject to regulatory approvals and local permitting, would come online in the late 2020s and hinges on transmission upgrades and tariff arrangements that are not yet finalized.

📅 February 24, 2026
⏱️ 2 min read
Google to Build Minnesota Data Center With 1,900 MW of Renewables

Key Takeaways

  • Google will build its first Minnesota data center in Pine Island on a 480-acre site about 70 miles southeast of Minneapolis.
  • Xcel Energy will deliver 1,900 MW of new renewables to Minnesota: 1,400 MW wind, 200 MW solar, and 300 MW battery storage, with projects online in 2028 (wind) and 2029 (solar/storage).
  • Google will fund transmission infrastructure and a premium tariff to insulate consumers from infrastructure costs, while covering 100% of its energy costs and adding new capacity to the grid (pending regulatory confirmation).
  • Tax incentives include a $36 million tax abatement; the city expects more than $130 million in local tax revenue from the project.
  • Local opposition includes the Stop the Pine Island Data Center group and a Minnesota Center for Environmental Advocacy lawsuit challenging environmental review (awaiting regulatory filings).

People Involved

  • No specific individuals mentioned

Entities Involved

  • Google Inc. (Alphabet) Developer of the data center project
  • Xcel Energy Utility owner of the renewable-energy package supporting the project
  • Pine Island City Council Local government backing the project
  • Minnesota Public Utilities Commission (MPUC) Regulator reviewing the Google-Xcel agreement and related filings

MarketMoodz Analysis

For investors, the plan signals a multi-gigawatt, multi-year capex commitment that could reshape Minnesota’s energy landscape. A 1,900 MW renewables buildout tied to a hyperscale data center implies sizable transmission upgrades and long-term energy contracts that affect local ratepayers and capital markets.

Minnesota’s market positioning is evolving: with roughly 74 data centers, the state is emerging as a growth area alongside established hubs like Virginia, which hosts hundreds of data centers. The deal underscores how tech giants are tying data-center demand to grid-scale renewables and tariff-based cost recovery, creating both investment opportunities and regulatory risk.

Watch regulators’ decisions on the MPUC review, the environmental permitting process, and potential lawsuits that could alter timelines or costs. Transmission permitting, tax incentives, and community engagement will shape the project’s economics and the timetable for downstream capex.

Source: Original Article

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