Minnesota attorney general challenges Google data center power deal
Minnesota Attorney General Keith Ellison says a deal for Xcel Energy to power a Google data center could push costs onto other customers, MPR News and CBS Minnesota reported. The data center is planned for Pine Island. Xcel disputes that. CNBC reported that Google would pay for new wind and solar power.
Minnesota Attorney General Keith Ellison is challenging a proposed agreement for Xcel Energy to power a huge Google data center in Pine Island, saying it could leave other customers paying extra costs, MPR News and CBS Minnesota reported.
In comments filed with the state's Public Utilities Commission on Thursday, Ellison's office said Xcel had not shown the deal "is reasonable, consistent with public interest or meets the stringent requirements of applicable law," MPR News and CBS Minnesota reported. State law requires "all costs attributable to the utility's very large customers" to be charged to those customers, MPR News reported.
Ellison's office estimates the deal would bring $1.1 billion in net costs to customers, CBS Minnesota reported. Xcel says it would provide more than $1 billion in savings, CBS Minnesota reported. Ellison also raised concerns about costs after Google's 15-year contract ends, or if Google leaves early, MPR News reported. "Xcel has redacted almost all of the dollar amounts of these potential impacts," his office wrote, according to MPR News and CBS Minnesota.
An Xcel spokesperson called Ellison's comments "inconsistent with the facts in the docket," CBS Minnesota reported. "Any large energy users, including data centers, need to pay their own way," the spokesperson said, according to CBS Minnesota.
Google plans to finance 1,400 megawatts of wind, 200 megawatts of solar and 300 megawatts of battery storage for Xcel's grid, more than the 780-megawatt data center would use, CNBC reported. Google would pay for at least 75% of its contracted capacity even if it uses less, CNBC reported. Xcel said the new power will serve all local customers, CNBC reported.
Pine Island is a town of about 4,000 people an hour southeast of Minneapolis, CNBC reported. Ellison is running for reelection against Republican Ron Schutz, MPR News reported. The commission will decide after a public comment period ends, MPR News reported.
What we know: Ellison has asked regulators to scrutinize the Google deal, and Xcel says Google will pay its own way.
What we don't: How the Public Utilities Commission will rule, and when.
Where outlets agree MPR News and CBS Minnesota report that Ellison filed comments arguing the Google-Xcel deal could shift costs to other customers, and CNBC details Google's plan to fund new clean power.
Where they differ Ellison's office estimates the deal would bring $1.1 billion in net costs to customers, while Xcel says it would provide more than $1 billion in savings and that Google will pay its own way.