On March 3, 2026, Minnesota Power welcomed Google's plans for a data center in Hermantown and announced it has reached an Electric Service Agreement (ESA) with the global company to power the project. The new data center will be served under an existing regulated rate structure in compliance with the Minnesota law that ensures existing customers do not pay the costs associated with connecting and serving a new large customer.
Data centers are the heart of the internet, from personal electronics to business operations to government services. The planned Hermantown data center will support online services that people use every day, including Workspace, Search, YouTube and Maps.
This collaboration with Google will enable the development of 700 megawatts (MW) of new clean energy resources without increasing costs to customers. These system assets, including 300 MW of wind energy and 400 MW of battery storage, will support progress toward Minnesota's carbon-free standard and strengthen the resilience of the system for all Minnesota Power customers. In addition, Minnesota Power and Google will work together to identify opportunities to deploy demand flexibility capabilities that can help reduce grid strain during peak times. Under its EnergyForward strategy, Minnesota Power has made significant progress toward meeting the requirements of Minnesota's carbon-free law, with customers receiving over 60% of energy from renewable sources today.
"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 Minnesota Power Chief Operating Officer Josh Skelton. "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."
Minnesota Power is committed to ensuring the reliability and affordability of the grid for all customers. Google will contribute $5 million in energy impact funding to help bolster Minnesota Power's energy affordability and efficiency programs for low- to moderate-income residential customers. The ESA also includes new power infrastructure development funded by Google to protect reliability for all customers.
Separately, the data center will contribute millions of dollars annually to the statewide energy efficiency and weatherization program as specified in the 2025 Minnesota 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, 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's electricity system is governed by state and federal laws and regulated by the Minnesota Public Utilities Commission (MPUC), which protects customers by setting rates and deciding how the company produces and delivers electricity. The ESA will be filed with the MPUC for public and regulatory review and approval later this month.
About Minnesota Power
Minnesota Power provides electric service within a 26,000-square-mile area in northeastern Minnesota, supporting comfort, security and quality of life for 150,000 customers, 14 municipalities and some of the largest industrial customers in the United States.
More information can be found at www.mnpower.com
About ALLETE, Inc.
ALLETE, Inc. is an energy company headquartered in Duluth, Minnesota. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth, Minnesota; BNI Energy in Bismarck, North Dakota; and New Energy Equity, headquartered in Annapolis, Maryland; and has an 8% equity interest in the American Transmission Co.
More information about ALLETE is available at www.allete.com
