Xcel-Google Deal Hits Snag as Minnesota AG Questions Costs

Xcel Energy's agreement with Google for its proposed Pine Island data centre has hit a roadblock. On October 1, Minnesota's Attorney General asked the Public Utilities Commission to withhold approval of the 15-year electricity deal.

The AG's office raised concerns that Xcel's estimate of $1.1 billion in net benefits for other customers might be off by a whopping $100 million, with actual costs potentially hitting around $1 billion.

Google had announced in February that it would pay all costs associated with its electric service, but the AG's office questioned who would bear the costs of resources built to serve the site after 15 years, or earlier if Google reduced demand or ended service.