Xcel Energy announced it will power a new Google data center in Pine Island, Minnesota. The data center and associated Electric Service Agreement will provide a significant contribution to the state's economy, including a large buildout of new clean energy projects that will contribute to Minnesota's clean energy goals while ensuring that Xcel Energy's current customers benefit as a result of this growth. Data centers serve as the core infrastructure that powers the internet, from personal electronics to business operations to government services.
Xcel Energy recently signed an agreement to supply power for the Google data center that will support core services -- including Workspace, Search, YouTube and Maps -- that people, communities and businesses use every day. Xcel Energy is committed to ensuring that new large loads do not increase costs for existing customers and that service remains reliable. Under the agreement, Google will pay all costs for its new service in line with its typical practices and Minnesota's regulatory and legislative requirements for large loads.
Over the past five years, Xcel Energy's average Minnesota residential customer's electric bills were 27% below the national average. Since 2013, residential electric bills have increased by 1.55% a year, well below the rate of inflation. As part of the agreement, Xcel and Google are partnering to bring 1,900 megawatts of new clean energy to the grid.
In addition, Google will cover any new grid infrastructure costs associated with the project and has planned carefully with Xcel Energy to ensure electricity in the area remains reliable and affordable for all of Xcel Energy's customers. A Clean Energy Accelerator Charge (CEAC) will provide for 1,400 MW of wind, 200 MW of solar and 300 MW of long-duration energy storage, along with a $50 million investment towards Xcel Energy's Capacity*Connect Program, which will help drive reliability on the grid. The additional generation will help advance Xcel Energy beyond its current energy mix of 70% carbon-free electricity.
The clean energy resources funded through the agreement include a 300 megawatt (30 gigawatt-hour) Form Energy iron-air battery system installation, the largest battery project by gigawatt-hour energy capacity announced to date in the world. This 100-hour battery system will store energy during periods of high production and low demand and dispatch it to the grid during times of high demand, providing firm capacity and strengthening grid reliability when it is needed most, even over multiple days.
