Xcel Energy announced a 1,900‑MW clean‑energy power agreement with Google for a new data center in Pine Island, Minnesota. The deal adds 1,400 MW of wind, 200 MW of solar, and 300 MW of long‑duration storage, including a 300‑MW iron‑air battery system from Form Energy that will be the world’s largest by gigawatt‑hour capacity and can discharge for 100 hours.
Google will cover all costs associated with the new service, including grid infrastructure, and will invest $50 million in Xcel’s Capacity*Connect program. The agreement is part of Xcel’s strategy to double its contracted data‑center capacity target to 6 GW by 2027 and to deliver low‑cost, carbon‑free power to large‑scale customers.
The addition of 1,900 MW of clean energy pushes Minnesota’s carbon‑free electricity mix beyond its current ~70% level and supports the state’s climate goals. The long‑duration storage component also enhances grid reliability and provides a buffer for the variable output of wind and solar resources.
Xcel’s Q4 2025 earnings showed a year‑to‑year increase in GAAP diluted earnings per share from $0.81 to $0.95 and ongoing EPS from $3.50 to $3.80. Revenue for the quarter missed consensus estimates, but earnings met expectations, a result attributed to disciplined cost management amid macro‑economic headwinds.
CEO Bob Frenzel said, “As we look forward into 2026, we recently announced another large data center customer. We also announced two strategic alliances with industry‑leading development and supply chain partners to help ensure we have the right resources to deliver critical system investments affordably, accelerate data center development for the benefit of all of our customers, and drive innovation. We are excited for the future and to make energy work better for our customers and communities.” The announcement reinforces Xcel’s position as a preferred partner for high‑growth, energy‑intensive clients and signals confidence in the continued expansion of the data‑center market.
Xcel reaffirmed its 2026 EPS guidance of $4.04 to $4.16 per share, consistent with its long‑term annual growth objective of 6% to 8+%. The company’s capital investment plan of $60 billion for grid modernization and clean‑energy expansion underpins the strategic importance of the Google agreement and supports the broader shift toward a low‑carbon, high‑capacity power system.
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