MN Ratepayers Could Be On The Hook For 'Billions' Over Google Data Center, AG Warns

SAINT PAUL, MN — Xcel Energy customers could end up paying billions of dollars tied to Google's planned data center in Pine Island, Minnesota, even though state law says they shouldn't have to, according to Attorney General Keith Ellison's office.

The AG's office raised the concerns Thursday in comments filed with the Minnesota Public Utilities Commission, which must sign off on the power deal between Xcel and Google.

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Xcel says Google will bring more than $1.1 billion in net benefits to its other customers. The AG's office says its own analysis points the other way: roughly $1 billion in net costs for those customers.

A 2025 state law requires data centers and other huge power users to cover the full cost of serving them, so households and small businesses don't foot the bill. The AG's office says Xcel hasn't shown the Google deal meets that standard.

The office flagged two main risks. First, it says Xcel hasn't shown Google will pay all of its costs during the 15-year contract. Second, other customers could get stuck paying for power plants and equipment built for the data center if Google uses less power than expected or leaves. The AG's office says that tab could reach billions of dollars after the contract ends, and even more if Google walks away early.

The office also criticized Xcel for blacking out nearly all the dollar figures in its filing as trade secrets, saying it leaves the public in the dark about how the deal could affect electric bills. It wants Xcel to justify those redactions or remove them.

The AG's office is asking regulators not to approve the deal until those risks are addressed.

Patch has reached out to Google for comment.

When Google announced the project in February, the company said it would pay all costs associated with its electric service and that the deal was designed to add clean energy without shifting costs to local customers.

"Google is committed to maintaining affordability for ratepayers, strengthening grid infrastructure for the benefit of all users, and creating high-paying local jobs," Kate Franko, Google's regional head of data center public affairs, said in a statement released by the city of Pine Island at the time.