Google Data Center Deal Threatens Billions in Costs for Minnesota Ratepayers

The planned Google data center in Pine Island, Minnesota, has raised concerns about potential costs to Xcel Energy customers. According to Attorney General Keith Ellison's office, households and small businesses may end up paying billions of dollars tied to the project. The AG's office cited a 2025 state law that requires large power users like data centers to cover their own costs.

The law was enacted two years ago to prevent ratepayers from footing the bill for massive projects. However, Xcel has not shown that Google will pay all of its costs during the 15-year contract, as required by the law. The AG's office also pointed out that other customers could be stuck paying for power plants and equipment built for the data center if Google uses less power than expected or leaves early.

The potential tab for Xcel's customers could reach billions of dollars after the contract ends, with even higher costs if Google walks away early. The AG's office is asking regulators not to approve the deal until these risks are addressed. They also criticized Xcel for blacking out dollar figures in its filing as trade secrets, leaving the public in the dark about how the deal could affect electric bills.

Google had previously stated that it would pay all costs associated with its electric service and that the deal was designed to add clean energy without shifting costs to local customers. However, the AG's office disputes this claim, pointing out that Xcel has not shown that Google will cover all of its costs during the contract.

The Minnesota Public Utilities Commission must sign off on the power deal between Xcel and Google before it can be finalized. The AG's office is urging regulators to carefully consider the potential risks and consequences of this deal for ratepayers.