Xcel Energy CEO: Data centers won’t impact your electric bill

Xcel Energy CEO Bob Frenzel addressed concerns about the energy demands of AI data centers at a University of Minnesota event, asserting that these facilities could actually help lower electricity costs for all customers. Frenzel highlighted that while a number of large-scale data centers are in planning stages across Minnesota, posing questions about environmental impacts and power supply costs, Xcel Energy is confident in its ability to manage the increased load. He pointed to a specific agreement with Google, announced in late February, for a data center planned near Pine Island, north of Rochester. Under this deal, Google is responsible for funding the construction of four new power plants to generate 1,900 megawatts of renewable energy required for its facility, thus preventing these costs from being passed on to other Xcel Energy customers. Frenzel also emphasized that the existing power grid is sufficiently large but requires efficiency improvements through technology to meet exploding data center demands. He advocated for continued advancements in wind and solar power, high-capacity battery storage, and the development of new nuclear technologies as essential components for a carbon-free future capable of serving energy-intensive loads.