
The Pine Island blueprint: How Minnesota is setting the standard for data centers
News ClipMinnPost·Pine Island, Goodhue County, MN·3/26/2026
Google has announced a new data center project in Pine Island, Minnesota, developed in partnership with Xcel Energy and featuring Form Energy's long-duration batteries. The project serves as a blueprint for responsible data center development by addressing community concerns regarding electricity usage and water consumption through clean energy, new grid infrastructure, and advanced air-cooling technology. This approach, supported by Minnesota's legislation, ensures that the project finances its own energy and infrastructure needs without burdening local ratepayers or resources.
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Gov: Minnesota state government
Google has unveiled a new data center in Pine Island, Minnesota, positioning the project as a national model for responsible infrastructure development. Developed in collaboration with Xcel Energy, the facility is designed to address common community concerns about data center impact, specifically related to electricity and water usage. The project is seen as an outcome of Minnesota's recent legislation, which mandates transparency and cost protection for ratepayers when large new electricity users are involved.
A key component of the agreement involves Google financing 1,900 megawatts of new clean energy, including 1,400 megawatts of wind generation and 300 megawatts of long-duration energy storage. This energy generation will be built specifically for the facility, ensuring it does not draw from existing power grids and will be funded through a Clean Energy Accelerator Charge paid entirely by Google. Additionally, Google will cover all costs for new grid infrastructure required to serve the data center, protecting Minnesota ratepayers and enhancing grid reliability.
Form Energy, a company with strong Minnesota ties, will contribute the world's largest battery project by energy capacity, featuring non-toxic, non-combustible iron-air batteries capable of storing electricity for multiple days. On the water front, Google plans to employ advanced air-cooling technology, effectively eliminating the need for water-intensive cooling systems and preserving local water resources. Former U.S. Secretary of Energy Jennifer Granholm praised Minnesota's approach, highlighting how strong rules and cost accountability can allow for innovation while safeguarding community interests.