Pine Island, Minnesota – Google is building its first data center in the state, a significant investment in the region’s infrastructure and a demonstration of the company’s commitment to carbon-free energy. The facility, announced Tuesday, will be powered by 1.9 gigawatts of clean electricity, a combination of wind and solar power, and a groundbreaking long-duration battery system developed by startup Form Energy. This project represents a novel approach to ensuring reliable renewable energy for data centers, which are notoriously energy-intensive operations.
The demand for data storage and processing continues to surge, driven by cloud computing, artificial intelligence, and the ever-increasing reliance on digital services. Data centers are the backbone of this digital world, but their energy consumption has become a growing concern. Google’s Minnesota data center aims to address this challenge head-on, utilizing a substantial battery capable of storing energy for an unprecedented length of time. The project highlights the growing importance of energy storage solutions in the transition to a sustainable energy future.
Xcel Energy will partner with Google to build 1.4 gigawatts of wind power and 200 megawatts of solar power to feed the Form Energy battery, which will have a capacity of 30 gigawatt-hours. This makes it the largest battery in the world, according to Google, and will allow the data center to operate on clean energy for extended periods, even when the wind isn’t blowing or the sun isn’t shining. The ability to “firm” renewable energy sources – to provide consistent power even when the source is intermittent – is crucial for widespread adoption of clean energy technologies.
A Novel Battery Chemistry: Rusting for Power
What sets this project apart is the technology behind the battery. Unlike most grid-scale batteries that rely on lithium-ion technology, Form Energy’s battery stores energy through a unique process of rusting and deoxidizing iron. When oxygen from the air interacts with iron pebbles inside the battery, it creates rust, generating electricity. To recharge, the process is reversed, converting the rust back into metallic iron and releasing oxygen.
While iron-air batteries aren’t as efficient as lithium-ion batteries – typically delivering 50% to 70% of the energy used to charge them, compared to 90% or more for lithium-ion – they offer a significant cost advantage. Form Energy claims that its technology will ultimately bring the cost of storage down to $20 per kilowatt-hour, at least three times cheaper than current lithium-ion battery options. This cost reduction could be a game-changer for large-scale energy storage.
Economic Impact and Local Benefits
The new data center in Pine Island, located about an hour southeast of Minneapolis, is expected to bring significant economic benefits to Minnesota. Xcel Energy announced the agreement to supply power to the facility on February 24, 2026, emphasizing the project’s contribution to the state’s economy and clean energy goals. The Electric Service Agreement will involve a substantial buildout of new clean energy projects, benefiting both the state and existing Xcel Energy customers.
“Data centers are the backbone of the 21st century economy, and we’re excited to work with Google to advance the prosperity of our region and ensure our current customers benefit,” said Bria Shea, president of Xcel Energy–Minnesota, North Dakota and South Dakota, in a press release. Xcel Energy has stated that Google will cover all costs associated with its new service, aligning with Minnesota’s regulatory requirements for large loads. Over the past five years, Xcel Energy’s average Minnesota residential customer’s electric bills have been 27% below the national average.
Powering Core Google Services
The Minnesota data center will support core Google services, including Workspace, Search, YouTube, and Maps. These services are integral to daily life for millions of users worldwide, and ensuring their reliable operation requires robust and sustainable infrastructure. The project underscores Google’s commitment to powering its operations with clean energy and reducing its environmental footprint.
Challenges and the Future of Long-Duration Storage
While the Form Energy battery represents a significant step forward, long-duration energy storage remains a complex challenge. The efficiency limitations of iron-air batteries are a known factor, and scaling up this technology to meet the demands of a large data center will require careful engineering and optimization. However, the potential cost savings and the abundance of iron as a resource create this approach particularly promising.
The success of this project could pave the way for wider adoption of long-duration storage solutions, enabling greater reliance on renewable energy sources and accelerating the transition to a cleaner, more sustainable energy system. The Minnesota data center serves as a test case for a new model of data center operation, one that prioritizes both performance and environmental responsibility.
Google and Xcel Energy are continuing to develop the necessary infrastructure, with the data center expected to come online in the coming years. Further details regarding the construction timeline and specific operational parameters will be released as the project progresses.
What are your thoughts on Google’s investment in renewable energy and long-duration storage? Share your comments below, and let us understand how you feel this project will impact the future of data centers and clean energy.
