This article first appeared on GuruFocus.
Alphabet Inc. (GOOGL, Financials) said its Google unit will build a new data center in Pine Island, Minnesota, marking its first such facility in the state.
The 480-acre project will support artificial intelligence workloads and Google’s cloud operations. Under an agreement with Xcel Energy Inc., Google will bring 1,900 megawatts of new renewable energy to the grid, including 1,400 megawatts of wind, 200 megawatts of solar and 300 megawatts of battery storage.
Google said it will pay for all electricity and related transmission infrastructure required for the project. The renewable assets will be owned by Xcel and are expected to come online in 2028 and 2029. The Minnesota Public Utilities Commission must still review the agreement.
The project has faced some community opposition over environmental and energy-use concerns, though the Pine Island City Council has approved preliminary development plans and tax incentives. The move reflects growing demand for power as technology companies expand AI-related infrastructure.
