Xcel Energy is working on a third large data center development in Minnesota, though this one — unlike the other two — wouldn't necessarily be in Becker.
Second mystery company tells Xcel Energy it wants to build a big data center in Minnesota
A company using the code name "Amber Kestral" said it would invest at least $700 million in the facility, Xcel told regulators.
November 3, 2022 at 11:00AM
If all three data centers come to fruition, more than $2 billion would be invested in Minnesota and thousands of construction jobs would be created.
The latest data center proposal would entail an outlay of at least $700 million by a Fortune 100 company, Xcel said in a filing this week with the Minnesota Public Utilities Commission (PUC). The data center would create 1,000 construction jobs and at least 50 full-time jobs.
The Fortune 100 company "wishes to remain unnamed at this time" and is evaluating several possible locations for the data center, Xcel said in the filing, which asks the PUC for approval of various electric service agreements.
The Fortune 100 company would use the data center for its own operations and could end up developing more than one, the filing said.
Data centers contain thousands of computer servers that store and process reams of information. They usually run around the clock and use enormous amounts of power — making them prime customers for electric utilities.
In September, Xcel told the PUC that it was working with another mystery company on a data center on its Sherco property in Becker.
Xcel is asking the PUC for approval to sell 348 acres of Sherco land to Elk River Technologies LLC, which appears to be a company created specifically for the project.
Likewise, with the latest data center, Xcel is working with a subsidiary apparently created for a single project, this one dubbed "Amber Kestral." Little information is available in public records about either Amber Kestral or Elk River Technologies.
The Elk River Technologies project, which would cost up to $1 billion, would be near the Google data center in Becker that Xcel announced in 2019. The Google project was estimated then to cost $600 million, but that price tag has likely increased because of inflation.
Google has an option to buy about 300 acres from Xcel at its Sherco site, home to three large coal-fired power plants slated to close by 2030. The option expires at the end of 2022, along with a separate "notice to proceed" agreement between the companies.
At a February PUC meeting, an Xcel executive acknowledged concerns about the Google data center but was "hopeful" it would proceed. At the time, Google told the Star Tribune it had not abandoned the project.
Becker and Sherburne County officials have both said in recent months the Google project is progressing.
"We continue to meet with representatives from the city of Becker, Google and Xcel Energy about the proposed project and believe we are moving forward on a final decision and a timeline," Bruce Messelt, Sherburne County Administrator, said Wednesday.
St. Paul Regional Water Services is testing water from the reservoir to make sure it is safe.
