Google Data Center Power Deal Faces Billion-Dollar Cost Dispute

Google’s proposed 15-year power contract for a data center in Pine Island, Minnesota, is before state regulators as Xcel Energy and the attorney general’s office dispute its potential impact on other electricity customers. Xcel projects $1.1 billion in net benefits to its other customers over the contract term. The Minnesota attorney general’s office says its analysis suggests the agreement could instead leave those customers with roughly $1 billion in net costs. Both figures are projections, not costs or savings already incurred. The proposed arrangement includes 1,400 megawatts of wind capacity, 200 MW of solar capacity and 300 MW of iron-air battery storage from Form Energy. Google has also pledged $50 million to Xcel’s Capacity*Connect program, which places smaller batteries across the utility’s system.

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