Google says it can build data centers the right way. Some experts and residents are skeptical
Google is proposing a 780-megawatt AI data center in Pine Island, Minnesota, alongside an agreement with Xcel Energy to add wind, solar and battery capacity to the grid. The deal is intended to protect ratepayers and support cleaner power, but experts question whether large-scale grid upgrades are necessary and whether the project will benefit local customers.
Google is proposing a 780-megawatt AI data center in Pine Island, Minnesota, and has negotiated an agreement with Xcel Energy to finance 1,400 megawatts of wind power, 200 megawatts of solar generation and 300 megawatts of battery storage. Xcel says the added capacity would serve local customers broadly, while Google would remain responsible for minimum demand charges and potential exit fees even if its electricity needs decline.
The agreement is awaiting approval from the Minnesota Public Utilities Commission. Google energy executive Amanda Peterson Corio described the project as a way to help modernize aging U.S. infrastructure, while energy analysts Jigar Shah and David Pomerantz questioned whether utilities and data center operators should build smaller facilities that make better use of existing grid capacity. The proposal has drawn skepticism amid broader concerns about data centers' effects on electricity costs, grid reliability and the environment.