Feb 24 (Reuters) – Xcel Energy said on Tuesday it has partnered with Google to power the tech giant’s new data center in Pine Island, Minnesota, while contributing 1,900 megawatts of new clean energy to the grid.
U.S. power consumption is expected to increase rapidly through this year and the next, driven by the rapid build-out of data centers for artificial intelligence services and cryptocurrency, as well as a shift by homes and businesses toward electric heating and transport.
To meet this surging demand, utilities have been investing billions of dollars to upgrade the country’s electric grid, though this has raised concerns about increasing customer bills.
Xcel said the project would not raise costs for existing customers, as Google will pay all costs for its new service in line with Minnesota’s regulatory and legislative requirements for large loads.
The company said the project will add 1,400 MW of new wind energy capacity, 200 MW of solar power and 300 MW of long-duration energy storage. Additionally, there will be a $50 million investment in Xcel’s Capacity*Connect program.
Alphabet’s Google has been doubling down on securing sources to power its data center operations across the country.
Earlier in the day, AES Corp signed a 20-year agreement with the company to supply power to the U.S. tech giant’s new data center planned in Wilbarger County, Texas.
Last week, renewable energy company Ormat Technologies said it had entered into a long-term geothermal power purchase agreement with NV Energy to support Google’s operations in Nevada.
(Reporting by Katha Kalia in Bengaluru; Editing by Vijay Kishore)
