Monticello Times reports…

Will a massive data center drive up residents’ electric bills? Could its demand for power threaten reliability? And if electricity becomes scarce, who gets priority?

Those were among questions City Council members put to Xcel Energy representatives Oct. 12 during a special meeting examining the potential effects of the proposed data center development.

Xcel officials said state regulations and recently approved customer protections are designed to prevent large electricity users from shifting their costs to existing customers. They also emphasized projects of this size generally require new power generation and extensive infrastructure planning.

But while the utility sought to reassure council members, questions remained about the proposed Monticello development, including how electricity would be allocated during a major grid emergency.

City Administrator Rachel Leonard said the discussion was arranged to address recurring concerns about the proposed Edmonson Business Center campus south of 85th Street NE and east of Highway 25.

Other questions included:

• Who pays for the power?
• Does more demand mean more generation?
• What happens during an emergency?
• Could data centers lower electric bills?

The conversation (and study) is not completed…

Although Xcel officials discussed how large data centers are generally served, the electrical requirements for Monticello’s proposed development have not been finalized.

Andre said the project is in the facility study stage, which Xcel expects to complete by the end of 2026. The study will produce preliminary estimates of necessary infrastructure, costs and timelines.

Council member Charlotte Gabler questioned how Xcel could plan for the project when its eventual end user has not been publicly identified.

Andre explained that the utility begins with anticipated electricity demand supplied by the developer, using factors such as acreage, building plans, zoning requirements and experience with similar projects.

Faribault Daily News reports...

Please plan to join us at Faribault Public Works (1200 Belview Trail) on Nov. 18 at 6 p.m. for a timely discussion about data center ordinances.

This Council Chat provides an opportunity for the public to interact with the City Council and City staff regarding the various proposed data center-related ordinances. Staff will have various stations focusing on key ordinances, such as land use, water and sewer, noise, lighting and other ordinances of interest. The public will gain a better understanding of the intent of the ordinances and why the ordinances must be legally defensible and enforceable.

The city holds Council Chats every month to further its commitment to community engagement. These inclusive and welcoming opportunities are held at various facilities and times to help ensure residents can become involved in the City’s continued success.

To see a full schedule of upcoming Council Chats, visit www.faribaultmn.gov/749/council-chats

WDIO reports…

The Hermantown City Council reviewed updates on the first-of-its-kind adaptive reuse and decommissioning framework for the proposed Google data center. Backed by a $210 million parent-company guarantee, the 50-year framework requires Google to restore the site if operations halt or tax payments lapse.

Explaining the financial backing behind this deal, city staff noted: “Effectively, this is a parent-company guarantee. Google will be signatory to this. Google will be part of this agreement. The finances of Google will be on the line for this agreement. And as such, they’re obligating $210 million for this agreement. And this obligation will increase annually based on the Consumer Price Index…”
…
To protect neighbors, the agreement leaves Google strictly at fault for any private well damage, requiring them to cover all repairs or pay to connect affected homes to city water. City leaders also shared details on a voluntary program for neighbors living within a half mile of the site.

The Tech Buzz reports...

Google’s plans to build an AI data center in Pine Island, Minnesota have sparked controversy, with the tech giant claiming the project will add clean energy to the grid and protect ratepayers. However, local residents and energy experts are raising concerns about whether the promised grid infrastructure upgrades are actually needed or if they primarily serve Google’s interests.

The article goes on to tell more about the project and ends with a broader perspective…

As Google moves forward with its Pine Island data center plans, the project serves as a test case for how communities and regulators evaluate Big Tech infrastructure proposals. The skepticism from experts and residents highlights the need for transparent analysis of who benefits from such developments and whether promised grid improvements serve public or private interests. The outcome in Minnesota may influence how similar projects are assessed in other communities facing data center proposals.

CNBC reports on Google’s response to public concerns about having a data center in their community…

Now Google is betting that a massive AI data center can help finance a cleaner, more reliable power grid. Its proposed deal with Xcel Energy would add more wind, solar and battery capacity than the data center is expected to use.

Under the agreement, Google would help pay for the added capacity and continue paying, even if it doesn’t use all of the power.

Pine Island, Minnesota, is a small town of about 4,000 residents an hour southeast of Minneapolis. Google hopes that its new 780-megawatt data center plan will build goodwill with the Pine Island community and keep the company on track to meet its goal of operating on carbon-free energy, 24 hours a day, seven days a week by 2030.

Google — whose cloud business powers its own Gemini AI and brought in nearly $25 billion in second-quarter revenue, an 82% increase from a year earlier — says it has found a model for doing this the right way. The company plans to finance the addition of 1,400 megawatts of wind, 200 megawatts of solar and 300 megawatts of battery storage to Xcel’s grid.

Those additions amount to more than the capacity of the data center itself, which Google said is because wind and solar do not generate energy at all times. Xcel Energy said the new power will serve all customers in the local area, not just Google. Xcel also said the upgrades will help advance the local grid’s carbon-free energy supply.

The proposed agreement between Google and Xcel includes minimum demand charges and exit fees, which Google says will keep the company on the hook for the infrastructure being built on its behalf, even if the AI boom cools. Google will pay for at least 75% of its contracted capacity, even if it uses less, and would owe up to eight years’ worth of those minimum demand charges if it terminates the agreement early.

The Center Square reports…

Companies operating data centers should be the ones that pay for upgrades to the electric grid, most voters say  according to a new poll.

The Center Square Voters’ Voice Poll found that 66% of voters believe that data center companies should be paying for the increased power demand and infrastructure required to get that electricity to the data centers.

Fourteen percent of those registered to vote say the costs of the upgrades should be shared by both data center companies and the public while 8% believe the upgrades are the responsibility of federal, state or local taxpayers and 6% believe that all electricity customers should pay for the upgrades. Another 6% said they were unsure who should pay.

The results come from a survey conducted by Noble Predictive Insights from Oct. 5-7 that polled registered voters nationally via opt-in online panel and text-to-web cell phone messages. The sample included 2,527 respondents comprised of 1,011 Republicans, 1,011 Democrats, and 505 Independents. Among independent voters, 220 respondents were classified as true independents, which are individuals who do not lean toward either major party when given the choice. The margin of error is +/- 1.95%.

St Cloud Live reports...

The St. Cloud City Council will have the chance to approve an ordinance that would place restrictions on the location, design and water usage of new hyperscale data centers during its meeting on Monday, Oct. 19.

If approved, hyperscale data centers would be required to use the city’s water system and must be at least 1,320 feet away from abutting road right-of-ways and residential zoned properties as measured from property line to property line. Permits for all data centers would require land use compatibility and traffic impact study, noise and vibration study, environmental impact study, and community impacts study.

All proposed data centers would also have to come with confirmation that sustainable energy use, water use and designs will be incorporated into the project. A decommissioning plan would also be needed.

The ordinance divides data centers into two groups: hyperscale data centers and on-site enterprise data centers. On-site enterprise data centers are defined as having 2,000 or fewer servers, taking up at most 10,000 square feet and using at most 50 megawatts of energy. Any data center above those limits is classified as a hyperscale data center.

The ordinance comes straight from the St. Cloud Planning Commission, which delayed a vote on a data center ordinance in September because members didn’t believe they had enough information about data centers and their community impacts. The commission then advanced this current ordinance on Tuesday, Oct. 13, in a 4-2 vote.

Marketplace APM reports…

Hyperscaler data centers have just arrived in Minnesota, but they’ve already sparked a major debate. With these projects turning into a midterm election issue, local residents are split — some are worried about tanking property values, while others think the facilities could bring a much-needed boost in jobs.