Google has unveiled plans to construct a new data center in Pine Island, a small city in southern Minnesota near Rochester. The project not only represents a significant commitment to expanding cloud computing and artificial intelligence infrastructure but also includes a major investment in clean energy, marking a unique approach to data center development in the state.
The data center will occupy 88 acres within a larger 482-acre site in Pine Island. The facility itself is expected to span 250,000 square feet, with construction set to begin later this year. Ryan Companies, the construction firm leading the development, is also marketing the remaining space for other potential industrial and technology projects. The aim, according to Ryan Companies Vice President Peter Fitzgerald, is to "incentivize Google to expand at this site and within our state."
Google has promised to implement a water-free cooling system for the facility, addressing a common concern in communities with data centers. While this method conserves water, it typically requires more electricity, making Google’s clean energy initiatives particularly relevant.
As part of the project, Google has entered into a contract with Xcel Energy to fund substantial new renewable energy developments. Google will cover the costs for 1,400 megawatts of wind energy, 200 megawatts of solar energy, and a 300-megawatt battery system capable of providing over 100 hours of energy storage. These investments, which Xcel Energy President Bria Shea described as "unique", will not only power Google’s data center but also bolster Minnesota’s energy grid and contribute to the state’s carbon-free energy goals.
"Google will pay all of the costs for its service, ensuring our current customers do not see increased rates", Shea said in an interview with the Minnesota Star Tribune. "The agreement drives a significant investment in new clean energy that advances Minnesota’s carbon-free goals and strengthens grid reliability for everybody."
The clean energy projects, which will cost billions of dollars in total, reflect both Google’s corporate climate goals and legislative requirements passed by Minnesota lawmakers in recent years. Unlike other tech companies operating in the state, such as Amazon and Meta Platforms, Google has committed to funding new energy infrastructure as part of its agreement with Xcel.
Google’s decision to proceed with the project follows years of challenges for data center developments in Minnesota. In recent legislative sessions, state lawmakers have debated and passed regulations governing the industry, leading to concerns from some companies about extended permitting processes and increased oversight. Notably, both Amazon and Google previously walked away from proposed data center projects in Minnesota, citing various complications.
To avoid a repeat of such outcomes, the new contract between Xcel and Google includes safeguards like an exit fee to ensure the project moves forward. "This agreement supports our goal of expanding AI and cloud capabilities in a way that provides long-term value to the places we operate", said Amanda Peterson Corio, Google’s head of data center energy.
Despite these precautions, the project still requires final approval from the Minnesota Public Utilities Commission, as the electricity supply contract has not yet been submitted.
The Pine Island data center is one of at least a dozen large-scale data center proposals currently under consideration in Minnesota. However, many of these projects remain in the planning stages or have been halted. Meta Platforms is the only other company actively constructing a data center in the state, with a project underway in Rosemount.
In Pine Island, the development has been shrouded in confidentiality, with the city initially signing a non-disclosure agreement with Google and referring to the project by the code name "Project Skyway." Similar agreements have sparked controversy in other Minnesota cities, but Google has now revealed its plans, bringing clarity to the scope of the project.
Shea expressed optimism about the partnership, emphasizing its benefits for both Google and Minnesota residents. "This contract with Google shows it is possible to support this critical digital infrastructure, drive economic investment, advance clean energy, and strengthen reliability all while ensuring existing customers benefit", she said.
For Pine Island, the data center represents an economic opportunity while aligning with the state’s ambitious clean energy goals. The project underscores the increasingly vital role of renewable energy in meeting the demands of modern technology infrastructure.
