Minnesota data centers' impact on power grid discussed amid heat wave
Data centers in Minnesota are being scrutinized for their potential impact on the power grid during heat waves. Utilities and regulators state that extreme weather is the primary driver of peak demand, but they are planning for future data center growth. The Minnesota Legislature and Public Utilities Commission have implemented safeguards requiring large customers, including data centers, to cover system costs and comply with clean energy benchmarks.
The article from 5 EYEWITNESS NEWS investigates the strain data centers place on Minnesota's power grid during heat waves, a topic gaining significant local attention. While acknowledging that some cities have implemented moratoriums on new data center developments, the report focuses on the current and planned facilities' energy demands across the state.
Utilities like Minnesota Power, Xcel Energy, and Otter Tail Power Company (OTPCO), along with the Midcontinent Independent System Operator (MISO), assert that extreme weather, particularly summer heat, is the primary cause of peak power demand, not current data center operations. They emphasize that they plan for high-demand periods through various tools, including demand response programs, conservation messaging, and bringing more generation online. Amy Rutledge, corporate communications director for Minnesota Power, noted that her utility does not yet host data centers and is a winter-peaking utility. Xcel Energy, which does have data centers, stated they are not yet driving grid stress in its Upper Midwest service area. OTPCO added that large customers like data centers help spread fixed costs but may be subject to energy control during high-demand periods.
Despite current minimal impact, the Minnesota Legislature has set guidelines for data center electricity use starting in 2025. Cori Rude-Young, communications director for the Minnesota Public Utilities Commission (PUC), explained that the commission approved safeguards in May. These measures require "very large customers," such as data centers, to fully cover all system, generation, and transmission costs they create, including system upgrades, and to comply with the state's clean energy benchmarks. These actions are designed to protect Minnesota households and businesses from associated costs. MISO reported that hyperscale data centers currently account for only about 1.3 gigawatts of demand across its 15-state region, representing a relatively small share of total system demand.