Xcel Energy and Google partner to construct a data center and bring new clean energy to the grid
By Global Infrastructure Sherpa · Feb 25, 2026
Xcel Energy and Google announced their partnership to construct a data center in Pine Island, Minnesota and will partner to bring 1,900 megawatts of new clean energy to the grid, where Google will cover any new grid infrastructure costs associated with the project.
Deal Analysis
Xcel Energy and Google's partnership to construct a data center in Pine Island, Minnesota, and bring 1,900 MW of new clean energy to the grid represents a significant commitment to renewable energy development. Google's willingness to cover new grid infrastructure costs associated with the project is a notable aspect, demonstrating a proactive approach to ensuring the feasibility and sustainability of its data center operations. This collaboration aligns with both companies' strategic goals: Xcel Energy's focus on expanding its renewable energy portfolio and Google's commitment to carbon-free energy procurement for its operations. The involvement of NEXT Renewable Fuels, though their specific role isn't detailed, suggests a potential integration of renewable fuels into the broader energy strategy.
The deal is particularly noteworthy due to the large capacity of new wind energy being added to the grid (1,900 MW) and the direct involvement of a major technology company like Google in financing grid infrastructure. This model, where a large energy consumer directly contributes to expanding renewable energy capacity and grid upgrades, could become increasingly common as corporations seek to meet ambitious sustainability targets. The partnership also highlights the growing convergence of the energy and technology sectors, with data centers becoming significant drivers of renewable energy demand. While the financial details remain undisclosed, the scale of the project suggests a substantial investment.
- Partnership between Xcel Energy and Google to build a data center and add 1,900 MW of clean energy to the grid.
- Google will cover new grid infrastructure costs, demonstrating a commitment to enabling renewable energy projects.
- Involves a major utility company (Xcel Energy) and a leading technology company (Google).
- Potential involvement of NEXT Renewable Fuels suggests a broader renewable energy strategy.
Market Context: The deal occurs within the context of increasing demand for renewable energy driven by corporate sustainability goals and the growing energy needs of data centers. The wind energy sector is experiencing significant growth, with utilities and corporations actively seeking to expand capacity.
Source Intelligence
KEY DETAILS
A Clean Energy Accelerator Charge 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.
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Deal Size
along with a $50 million investment towards Xcel Energy’s Capacity*Connect Program
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Capacity
the companies will partner to bring 1,900 megawatts of new clean energy to the grid
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Location
Xcel Energy and Google announced their partnership to construct a data center in Pine Island, Minnesota
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PPA Details
where Google will cover any new grid infrastructure costs associated with the project
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Announcement
At its February 26, 2026, agenda meeting, the MPUC will consider: ... Additionally, Xcel Energy and Google announced their partnership to construct a data center in Pine Island, Minnesota.
PARTIES MENTIONED IN SOURCE
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Xcel Energy
developer
"Xcel Energy and Google announced their partnership to construct a data center in Pine Island, Minnesota"
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Google
buyer
"Xcel Energy and Google announced their partnership to construct a data center in Pine Island, Minnesota"
high quality
Enriched Feb 26, 2026
Market Context
This deal is part of the Wind sector in null.
1 of 138 Wind deals tracked this month · Updated daily