The Daily Dig
Google plans to build its first Minnesota data center on a 480-acre site in Pine Island, roughly 70 miles southeast of Minneapolis. The facility will support AI applications and the company's broader cloud infrastructure. Construction hasn't started, and the utility agreement with Xcel Energy still needs approval from the Minnesota Public Utilities Commission.
Under the proposed deal, Google would cover 100% of its electricity costs and fund all required grid infrastructure, including new transmission lines tied directly to the project. The energy package includes 1,400 megawatts of wind, 200 megawatts of solar, and 300 megawatts of battery storage, all owned by Xcel, with expected online dates in 2028 and 2029. Pine Island's city council has approved two preliminary development plans and a $36 million tax abatement. A local opposition group and the Minnesota Center for Environmental Advocacy have both challenged the environmental review.
Project Snapshot:
Project: Google Pine Island Data Center / Project Skyway
Parent Company: Alphabet
Developer: Ryan Companies
Location: Pine Island, Minnesota (approx. 70 miles SE of Minneapolis)
Site Size: 480 acres
Primary Use: AI applications and cloud operations
Utility Partner: Xcel Energy
Grid Scope: New transmission infrastructure required
Power Structure: Google to pay 100% of electricity and grid upgrade costs
Renewable Package: 1,400 MW wind; 200 MW solar; 300 MW battery storage
Renewable Online Timing: Expected 2028-2029
Tariff Structure: Premium rate designed to insulate other ratepayers from infrastructure costs
Regulatory Status: Pending Minnesota Public Utilities Commission review
Local Approvals: Two preliminary development plans approved (December)
Incentives: $36 million tax abatement approved (February)
Community Response: Organized opposition group; environmental lawsuit filed
Projected Local Tax Revenue: More than $131 million (per city administrator)
Construction Status: Not yet started
TheJobWalk Thoughts
The building is almost secondary right now. With nearly 1,900 megawatts of renewables and storage tied to a single end user, the utility side scope is where the early action is, and it runs on a completely different timeline than vertical construction. Transmission work, storage integration, and generation procurement follow regulatory approval, not building permits, so contractors and suppliers who are only watching the data center footprint may be watching the wrong clock. The PUC review and active litigation add real schedule risk, and the gap between city enthusiasm and regulatory reality is exactly where timelines get stretched. For firms looking to get ahead of this one, tracking transmission and storage procurement will get you into the right conversations well before anyone pours a foundation.
