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 about 70 miles southeast of Minneapolis. The new facility will support the company’s growing artificial intelligence applications and its broader cloud business.
To power the energy-hungry facility, Google struck a major deal with local utility provider Xcel Energy. The agreement includes adding a massive amount of renewable energy to the local grid. The plan calls for deploying 1,400 megawatts of wind power, 200 megawatts of solar power, and 300 megawatts of battery storage. Xcel expects these green energy projects to come online in 2028 and 2029.
Google executives emphasized that the company will cover the costs so local residents don’t see their bills go up. Amanda Peterson Corio, head of data center energy at Google, stated that the company will pay 100 percent of its energy and electricity costs. She also noted that Google will pay for any new transmission lines needed for the project, even if the data center itself doesn’t get built.
Despite these promises, the project faces stiff resistance from the community. Residents have formed a group called “Stop the Pine Island Data Center,” voicing concerns about water usage and potential environmental impacts. The Minnesota Center for Environmental Advocacy even filed a lawsuit last October challenging the project’s environmental review. Across the U.S., communities are becoming increasingly wary of data centers due to their strain on local resources.
Local government officials take a different view, focusing on the financial benefits. The Pine Island city council has already approved preliminary plans and financial incentives, including a $36 million tax abatement. City Administrator Elizabeth Howard estimates the project could bring in more than $130 million in tax revenue for the small town.
While Virginia remains the world’s largest data center market, tech companies are increasingly looking to states like Minnesota for space and power. While construction hasn’t started yet, the deal with Xcel marks a significant step forward for Google’s expansion into the Midwest.
