Xcel Energy and Google have entered into a partnership to add 1.9GW of new clean energy capacity to the electricity grid in Minnesota, US.

The agreement is linked to a new Google data centre set for construction in Pine Island, Minnesota, and is pending review by the Minnesota Public Utilities Commission.

Under the arrangement, Xcel Energy will supply power to the proposed facility, and both companies will commit to expanding wind, solar and long-duration storage infrastructure in the region.

Google will finance all expenses related to its electricity use, including required grid upgrades for the data centre project.

The initiative includes 1.4GW of wind generation, 200MW of solar generation and 300MW of energy storage.

The storage component features a 300MW (30 gigawatt-hour) iron-air battery installation from Form Energy, which is set to become the largest battery project by gigawatt-hour capacity globally once operational.

This technology is designed to store surplus electricity during periods of low demand and release it when demand increases, improving grid reliability.

In addition to clean energy development, Google will contribute $50m towards Xcel Energy’s Capacity*Connect Programme, which supports further grid reliability investments.

Xcel Energy has stated that electric bills for its current customers will not increase as a result of the project.

Google Data Centre Energy head Amanda Peterson Corio said: “By integrating new carbon-free energy and pioneering long-duration storage with Xcel Energy, we are helping to build a more resilient system that benefits the entire community.”

Over the past five years, average residential bills from Xcel Energy in Minnesota have remained below the national average.

Once reviewed and approved by state regulators, the agreement aims to support both local economic activity around the data centre and Minnesota’s broader clean energy objectives by moving Xcel Energy beyond its current mix of 70% carbon-free electricity.

Minnesota Chamber of Commerce president and CEO Doug Loon said: “The Minnesota Chamber is excited about the partnership between Google and Xcel Energy to deliver this project and we look forward to the economic benefits it will bring to Minnesota.”