Minnesota Power Reaches Agreement to Serve Planned Google Data Center

Minnesota Power has reached an Electric Service Agreement (ESA) with Google to supply electricity for a planned data center in Hermantown, the utility announced. The company said the project will be served under an existing regulated rate structure designed to ensure that existing customers do not pay the costs associated with connecting and serving a new large customer. The Hermantown facility will support services including Workspace, Search, YouTube and Maps.

Minnesota Power said the agreement will enable the development of 700 MW of new clean energy resources without increasing costs to existing customers. These resources include 300 MW of wind energy and 400 MW of battery storage. The company said the additions are expected to support Minnesota’s carbon-free energy standard while strengthening system resilience for all customers.

The utility and Google also plan to explore opportunities to deploy demand flexibility capabilities that could help reduce grid strain during periods of peak demand. Minnesota Power said more than 60% of the electricity delivered to customers currently comes from renewable sources as part of its EnergyForward strategy to meet the state’s carbon-free energy requirements.

“We’re excited to have a company with Google’s reputation for community investment and engagement choose our region for such a significant investment. Data centers present important economic and innovation opportunities for our region, including a growing tax base, job creation and industry diversification,” said Josh Skelton, Minnesota Power’s chief operating officer. “This agreement demonstrates how data centers can be brought onto the grid responsibly, with collaborative planning. As with any large customer, Google will cover the costs associated with the necessary energy infrastructure to meet its energy needs. The agreement enhances grid reliability and protects other customers. We’re proud to be the region’s premier power provider and supply the energy for this data center that will deliver economic benefits across our region.”

Google will contribute $5 million in energy impact funding to support Minnesota Power’s energy affordability and efficiency programs for low- to moderate-income residential customers. The ESA also includes development of new power infrastructure funded by Google to maintain system reliability for other customers.

Separately, the data center is expected to contribute millions of dollars annually to Minnesota’s statewide energy efficiency and weatherization program under the state’s 2025 data center energy law.

“We are proud to serve new customers with a strong commitment to sustainability while maintaining the reliability and affordability our customers expect. Adding new large customers to our system benefits all customers, as it spreads the fixed costs of the entire electrical grid across more customers, leading to more stable rates in the long term,” Skelton said.

“This collaboration with Minnesota Power serves as a model for how large-scale digital infrastructure can facilitate the expansion of clean energy and battery storage while contributing to local energy affordability,” said Amanda Peterson Corio, global head of data center energy for Google. “We look forward to being a long-term partner in the region’s economic growth and supporting Minnesota’s clean energy transition.”

Minnesota Power said the Electric Service Agreement will be filed with the Minnesota Public Utilities Commission later this month for regulatory and public review. The commission regulates the utility’s electricity rates and oversees how power is produced and delivered in the state.