Minnesota Power has signed an electric service agreement (ESA) with Google for the energy needed to power a 700-MW data center project in the state. The companies on March 3 said the installation in Hermantown, just west of Duluth, would operate under an existing regulated rate structure. Minnesota has a law to ensure existing electricity customers do not pay the costs associated with connecting a large-load customer to the power grid.
Minnesota Power said the energy for the data center will come from 300 MW of wind power, and 400 MW of battery storage. The companies on Tuesday said they will work together to find ways to deploy demand flexibility capabilities that would reduce strain on the power grid during times of peak demand.
Minnesota Power said that more than 60% of its power generation comes from renewable resources under the company’s EnergyForward strategy.
“We’re excited to have a company with Google’s reputation for community investment and engagement choose our region for such a significant investment. Data centers present important economic and innovation opportunities for our region, including a growing tax base, job creation and industry diversification,” said Minnesota Power COO Josh Skelton. “This agreement demonstrates how data centers can be brought onto the grid responsibly, with collaborative planning. As with any large customer, Google will cover the costs associated with the necessary energy infrastructure to meet its energy needs. The agreement enhances grid reliability and protects other customers. We’re proud to be the region’s premier power provider and supply the energy for this data center that will deliver economic benefits across our region.”
Support for Residential Customers
Google has said it will contribute $5 million in energy impact funding to support Minnesota Power’s energy
affordability and efficiency programs for low- to moderate-income residential customers. The ESA also includes new power infrastructure development funded by Google to protect reliability for all customers, according to the companies. Google has said the data center will contribute millions of dollars each year the statewide energy efficiency and weatherization program, as specified in the 2025 Minnesota data center energy law.
Said Skelton, “We are proud to serve new customers with a strong commitment to sustainability while maintaining the reliability and affordability our customers expect. Adding new large customers to our system benefits all customers, as it spreads the fixed costs of the entire electrical grid across more customers, leading to more stable rates in the long term.”
“This collaboration with Minnesota Power serves as a model for how large-scale digital infrastructure can facilitate the expansion of clean energy and battery storage while contributing to local energy affordability,” said Amanda Peterson Corio, global head of Data Center Energy for Google. “We look forward to being a longterm partner in the region’s economic growth and supporting Minnesota’s clean energy transition.”
The ESA will be filed with the Minnesota Public Utilities Commission for public and regulatory review and approval later this month.
—Darrell Proctor is a senior editor for POWER.
