Deals Counterparts

Xcel Energy to develop 1.9 GW of clean energy to supply Google's new data center in Minnesota

Partnership Hybrid announced Pine Island, USA Feb 27, 2026
1.9 GW
Capacity

Xcel Energy has agreed to develop 1.9 GW of new carbon-free generation, including 1.4 GW of wind, 200 MW of solar, and 300 MW of long-duration energy storage, to supply power to Google's new data center in Pine Island, Minnesota.

Deal Analysis

Xcel Energy has announced a significant partnership to develop 1.9 GW of new carbon-free generation specifically to supply Google's new data center in Pine Island, Minnesota. This substantial project, announced in February 2026, involves a hybrid technology mix comprising 1.4 GW of wind, 200 MW of solar, and 300 MW of long-duration energy storage. The inclusion of long-duration storage is particularly notable, designed to ensure reliable, round-the-clock clean power for the energy-intensive data center operation. This deal holds strategic importance for both Xcel Energy and Google. For Xcel Energy, a major U.S. utility increasingly focused on renewable energy, it represents a massive development opportunity and a clear commitment to expanding its clean energy portfolio through a direct utility-to-corporate supply model. For Google, an active clean energy buyer with a track record of securing significant carbon-free energy, this partnership directly addresses the substantial power demands of its new Minnesota data center, aligning with its sustainability objectives and ensuring a dedicated, clean power supply. The scale of 1.9 GW underscores the growing demand from corporate offtakers for bespoke, large-scale clean energy solutions. The partnership highlights a trend where utilities are collaborating directly with large corporate energy consumers to develop dedicated renewable energy infrastructure. This approach allows corporations like Google to meet ambitious carbon-free energy goals while providing utilities with guaranteed demand for new generation assets. The integration of long-duration storage further reflects an industry shift towards more resilient and dispatchable clean energy solutions.
  • Development of 1.9 GW of new carbon-free generation.
  • Partnership between major utility Xcel Energy and corporate offtaker Google.
  • Hybrid technology mix including 300 MW of long-duration energy storage.
  • Direct supply for Google's new data center in Minnesota.

Timeline

Announced
Feb 27, 2026
Signed
Closed