Google Building Data Center in Pine Island, Minnesota

Tech giant partners with Xcel Energy on clean energy-powered facility

Published on Feb. 24, 2026

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Google has announced plans to build a new data center in Pine Island, Minnesota, in partnership with local utility Xcel Energy. The data center will be powered entirely by clean energy, with Xcel and Google collaborating on new wind, solar, and long-duration energy storage projects to support the facility.

Why it matters

Data centers are critical infrastructure for the digital economy, but they also raise concerns about energy use and environmental impact. This partnership between Google and Xcel aims to address those concerns by ensuring the new data center in Minnesota is powered by renewable energy, contributing to the state's clean energy goals.

The details

Under the agreement, Google will pay all costs associated with electric service for the new data center. Xcel and Google will work together to bring 1,900 megawatts of new wind, solar, and long-duration energy storage to the power grid to support the facility. The companies say this innovative partnership model will allow the data center to be built without raising costs for other Xcel customers in Minnesota.

  • Google announced the data center plans on February 24, 2026.
  • The Electric Service Agreement will be filed for review with the Minnesota Public Utilities Commission in the coming weeks.
  • The Xcel-Google agreement needs to be formally approved by the commission before construction can begin.

The players

Google

An American multinational technology company that specializes in Internet-related services and products.

Xcel Energy

A major electric and natural gas utility that provides service to customers in eight Western and Midwestern states, including Minnesota.

Minnesota Public Utilities Commission

The state regulatory agency responsible for overseeing electric, natural gas, telephone, and other utility services in Minnesota.

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What they’re saying

“Data centers are the backbone of the 21st century economy, and we're excited to work with Google to advance the prosperity of our region and ensure our current customers benefit.”

— Bria Shea, President of Xcel Energy–Minnesota, North Dakota and South Dakota (Xcel Energy)

“Our commitment to Minnesota goes beyond building infrastructure; it's about being a responsible partner, neighbor, and a good citizen of the grid.”

— Amanda Peterson Corio, Head of Data Center Energy at Google (Google)

“Data centers are critical tools for economic development and growth in our state.”

— Doug Loon, President and CEO of the Minnesota Chamber of Commerce (Minnesota Chamber of Commerce)

What’s next

The Electric Service Agreement will be filed for review with the Minnesota Public Utilities Commission in the coming weeks, and the Xcel-Google agreement needs to be formally approved by the commission before construction can begin.

The takeaway

This partnership between Google and Xcel Energy demonstrates how data centers can be built in a more sustainable way, with a focus on renewable energy and minimizing environmental impact. It serves as a model for how tech companies and utilities can collaborate to support economic growth while also advancing clean energy goals.