Ellison: Google’s Pine Island data center could cost Minnesotans millions for electricity
Go Deeper.
Create an account or log in to save stories.
Like this?
Thanks for liking this story! We have added it to a list of your favorite stories.
The Minnesota Attorney General's office is raising new concerns about Google’s proposed data center in southeast Minnesota that could intensify opposition to the controversial mega project.
Attorney General Keith Ellison says that Google's agreement with Xcel Energy to power the huge, hyperscale data center in Pine Island could leave Xcel's other customers on the hook for millions and possibly more than a billion dollars in extra costs.
In comments filed with Minnesota's Public Utility Commission Thursday, Ellison notes that state law requires that “all costs attributable to the utility’s very large customers" be assigned to those large customers and not other ratepayers. But Ellison contends that Xcel's agreement with Google doesn't specifically protect other residential and business customers.
“The Attorney General’s Office argues that Xcel has not established that [the] Google [agreement] is reasonable, consistent with public interest or meets the stringent requirements of applicable law,” Ellison’s office wrote in a press release.
Turn Up Your Support
MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all.
The Attorney General is wading into the controversial data center debate as he runs for reelection in a tight race against Republican Ron Schutz, a Twin Cities attorney. Opposition to data centers across Minnesota and the country is reshaping politics and campaigns on both the right and the left, spurring political newbies to run for office, and putting pressure on incumbents in the lead up to the November midterm elections.
For now, it seems Ellison and Schutz are in agreement. During a debate Friday hosted by MPR News between the two candidates, both agreed that it is the Attorney General’s job to step in if a data center agreement is not complying with state law and forcing the energy cost burden onto Minnesota households.
In Ellison’s comments to the Public Utilities Commission, he argued that the Pine Island agreement between the tech giant and the power company is not in compliance. He alleges it would put residential and small business ratepayers at risk for shouldering increased electricity costs after Google’s 15-year contract term ends. If Google were to terminate its contact early, Ellison contends the risk to other utility customers would be even greater.
“Xcel should take steps to supplement the record to ensure that all costs attributable to serving Google’s data center are borne [sic] by Google, as the law requires,” Ellison’s office said.
In its comments to the Public Utilities Commission, the Attorney General’s Office also expressed concerns about the lack of transparency in the agreement, citing several redactions Xcel had made in the document that hid information about the costs of serving Google.
“Electricity service to Google’s data center could have significant impacts on Xcel’s other ratepayers, including Minnesota households,” Ellison’s office wrote. “Xcel has redacted almost all of the dollar amounts of these potential impacts, however, and has not provided specific explanations for some of its redactions.”
Xcel Energy told MPR News that it disagrees with Ellison’s view of the proposed deal with Google, stating that it has made it clear that any large energy users, including data centers, need to pay their own way without adding costs for other customers or affecting reliability.
Xcel spokesperson Megan Boldt said this includes paying for additional infrastructure. She said that for the Pine Island data center, Google has agreed to fund 1,900 megawatts of new clean energy resources, including wind, solar and battery storage at no cost to existing customers. Boldt said Google is also paying its fair share of the existing system costs, which brings significant benefits to Xcel’s existing customers.
“Xcel Energy is committed to transparency and customer protection throughout this review process,” Boldt wrote in an emailed statement. “It is still in the early stages, and we will continue to participate fully and provide information consistent with Public Utilities Commission requirements.
“The growing demand for energy presents a tremendous opportunity for Minnesota, but it must be done responsibly. Our agreement with Google is a model for how utilities and large energy users can work together to support economic growth, accelerate clean energy and protect existing customers,” Boldt added.
In public comments that Google submitted to the Public Utilities Commission earlier this week, the tech company stressed that the agreement with Xcel is “firmly in the public interest and fully complies with Minnesota [law].” A spokesperson for the company declined to share anything further.
Ryan Companies, the Pine Island data center developer, has not yet responded to MPR News’ request for comment.
What are the next steps?
According to state law, the Public Utilities Commission may approve, modify, or reject an electric service agreement proposed between a public utility and a very large customer. The commission will take into consideration whether or not the agreement is in the public interest and whether provisions are included to ensure the “very large customer” shoulders the costs and that other customers are not put at risk for covering extra costs down the road.
The Attorney General’s Office filed its initial comments as part of the commission’s public comment process. When that comment period closes, Xcel will have the opportunity to respond to the PUC. The commission will make its decision after the public comment period has concluded.
The Google data center project is already on hold, even though the Pine Island city council has signed off on it, while a judge considers the merits of a lawsuit seeking a more thorough environmental review.
