Google building data center in Pine Island, Minnesota

PINE ISLAND, Minn. (FOX 9) - Google is building a data center in southern Minnesota, the tech giant announced on Tuesday. Google is partnering with Xcel Energy on the project.

Google data center in MN

Local perspective:

Google says it's teaming up with Xcel Energy on the data center, which will be built in Pine Island, Minnesota, not far from Rochester. 

Google notes it will pay "all costs associated with our electric service." The companies have designed the Clean Energy Accelerator Charge in an effort to deploy clean energy without raising costs for Minnesota electricity customers. 

Xcel says this partnership includes a large buildout of new clean energy projects, which will "contribute to Minnesota's clean energy goals." 

Data centers are infrastructure used to power the internet but are controversial for communities where they're built, with residents arguing they cause noise pollution. Data centers are also criticized for the amount of energy and water they use.

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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 said in a statement. "This unique agreement is a model for data center partnerships in that it fulfills and protects Minnesota’s goals for a carbon-free future and drives investment deep into our communities — all while ensuring our current customers are not paying more for this growing demand."

The Google data center in Pine Island will be used to support Google's core services, such as Workspace, Search, YouTube and Maps, a press release says. 

"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, said in a statement. "This agreement supports our goal of expanding AI and cloud capabilities in a way that provides long-term value to the places we operate. By integrating new carbon-free energy and pioneering long-duration storage with Xcel Energy, we are helping to build a more resilient system that benefits the entire community."

As part of this agreement, Xcel and Google will bring 1,900 megawatts of new, clean energy to the power grid, a press release says. The Clean Energy Accelerator Charge will provide for 1,400 MW of wind, 200 MW of solar, and 300 MW of long-duration energy storage, as well as a $50 million investment toward Xcel Energy's Capacity Connect Program. 

"Data centers are critical tools for economic development and growth in our state," Doug Loon, president and CEO of the Minnesota Chamber of Commerce said in a statement. "Last year’s law that extended incentives for operation of data centers while balancing environmental considerations like water and energy use is a model for other states. The Minnesota Chamber is excited about the partnership between Google and Xcel Energy to deliver this project and we look forward to the economic benefits it will bring to Minnesota."

What's next:

The Electric Service Agreement will be filed for review with the Minnesota Public Utilities Commission "in the coming weeks," Xcel says. 

The Xcel-Google agreement needs to be formally approved by the commission.