Google announces new data center: commits to all-inclusive electricity costs with no price hikes, advancing green energy and energy storage simultaneously

On Tuesday, February 24th, Google announced on its official website that the company will build a new data center in Minnesota, USA, in partnership with local utility Xcel Energy to accelerate the implementation of innovative energy solutions.

Google stated that Xcel Energy will supply power to the new data center, and Google will cover all costs related to electricity services.

To speed up the deployment of clean energy without passing costs onto local users, the two companies designed a new contractual structure in Minnesota called Clean Energy Acceleration Charge (CEAC).

Google said that the CEAC model is similar to the Clean Transition Tariff (CTT) structure previously developed by Google and NV Energy. The new agreement will integrate Form Energy’s 1,400 MW wind, 200 MW solar, and 300 MW battery storage systems into Xcel’s grid.

Google did not disclose the specific power consumption of the data center in its statement, only indicating that it will bear all costs for the necessary grid infrastructure.

It is important to note that the agreement between Google and Xcel still requires approval from local regulators. Previously, the project faced some opposition from the local community and has not yet begun construction.

In recent years, opposition to data centers has increased in many parts of the U.S., with some residents blaming rising electricity prices on their high power consumption, and expressing concerns about environmental impacts. Additionally, data centers consume large amounts of water during cooling processes.

Google’s data center energy lead said in an interview, “Google’s approach is to ensure that our arrival does not transfer additional costs to other electricity users. We will bear 100% of the energy and power costs and ensure that the grid’s additional capacity can meet our needs.”

Bria Shea, President of Xcel’s regional business, pointed out that Google’s data center will also require new transmission infrastructure. Even if the project is canceled for some reason in the future, Google will still bear the costs of the transmission construction.

Furthermore, Google will pay a premium for renewable energy under a special electricity pricing mechanism to accelerate clean energy deployment in Minnesota while protecting ordinary consumers from infrastructure cost impacts.

(Source: Cailian Press)