Xcel Energy (Minnesota) and data centers

Large-load tariff and rules

Status

Large-load tariff or rules approved (2026-05-18)

Tariff

Xcel Energy very large customer tariff framework (new standalone customer class)

Docket

25-289, Minnesota Public Utilities Commission

What it says

The commission defined very large customers as new loads of 100 MW or more, approved a 15-year default term and 24-month exit notice, and raised the minimum bill and exit fee to 80% of contracted capacity. (Minnesota Public Utilities Commission)

Source excerpt

“The Commission adopted Xcel Energy’s proposed tariff framework for very large customers but strengthened it in several key areas”

Official forecasts of data center load

• Utility Dive reports a pending Xcel agreement to serve a roughly 1 GW Google data center in Minnesota. (Utility Dive, 2026-05-06)
  Source excerpt

  “a deal with Google for a nearly 1 GW data center”

• Fresh Energy (an advocacy group, not an official forecast) counts public planned Minnesota data center projects. (Fresh Energy, 2026-02-05)
  Source excerpt

  “there are currently 12 planned projects that are public, which would add a total of 1,120 MW of capacity”

What sources say about customer bills

Sources saying customers are protected, or bills are lower than they would be

• Minnesota Public Utilities Commission: The commission says its contract terms are meant to keep infrastructure costs from shifting to other customers if a large customer reduces use or leaves. (Minnesota Public Utilities Commission, 2026-05-18)
  Source excerpt

  “This ensures that if a very large customer reduces its usage or leaves early, the costs of the infrastructure built to serve it aren’t shifted onto everyone else.”

• Xcel Energy CEO Bob Frenzel: Xcel's CEO said the Google arrangement would not raise costs for existing customers. (Utility Dive, 2026-05-06)
  Source excerpt

  “doesn't increase costs for our existing customers”

Sources finding both, or saying it depends

• Fresh Energy: Fresh Energy notes that data centers have lowered rates in some areas and raised them in others, without a Minnesota-specific finding. (Fresh Energy, 2026-02-05)
  Source excerpt

  “data centers are driving up electricity rates in other places”

These are statements by regulators, utilities, advocates and researchers about this utility or its region. They are not a prediction of any customer’s bill, which depends on rates, usage and regulator decisions.

More

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