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What Happened to Google’s Proposed $600 Million Becker Data Center in Minnesota?

Google’s proposed $600 million Becker data center never moved to construction. Here’s what the 2022 termination means—and what the projected investment and job figures did not mean.
From TheFinanceBase Team3 min to read
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Google’s proposed $600 million data center in Becker, Minnesota, was not built. Google affiliate Honeycrisp Power missed a deadline to tell Xcel Energy to proceed, and Xcel terminated the project’s electric service agreements on December 8, 2022. Google did not publicly explain why it pulled out. The $600 million and job figures were estimates for a proposed project—not money spent or jobs created.

What Google proposed for Becker

The proposal was for a data center near Xcel Energy’s Sherco power plant in Becker, Sherburne County. In a 2019 filing supporting Xcel’s request for electric service agreements, Google LLC described the plan as conditional: “If the project moves forward, the project would generate at least $600 million in initial capital investment.” That was Google’s projection, not a Minnesota Public Utilities Commission finding or a record of completed investment. Minnesota PUC filing

Sherburne County project materials described a facility of approximately 375,000 square feet on roughly 315 acres, with an estimated $600 million investment: $300 million for construction and $300 million for equipment purchases. Those figures also described the proposal, not a facility that was built. Sherburne County project materials

What happened to the project

  1. 2019: Google’s filing backed Xcel’s request for electric service agreements for the proposed Becker data center.
  2. By the project deadline: Honeycrisp Power did not give Xcel the required notice to proceed, according to the Star Tribune.
  3. December 8, 2022: Xcel terminated the electric service agreements.
  4. December 21, 2022: The Star Tribune reported that Google had pulled out. Construction never began. Star Tribune report

The word “pauses” in the December 21 headline can suggest the project was simply waiting to restart. The reported record is more specific: the agreements ended after the notice-to-proceed deadline passed, and the proposed Becker facility was not constructed.

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Was the $600 million investment made?

No. The $600 million was a proposed investment estimate. Since construction never began, it should not be described as money invested in a completed Becker data center. The same distinction applies to the projected jobs:

Figure What it described
At least $600 million Google’s projected initial capital investment if the project moved forward, stated in its 2019 PUC filing. Minnesota PUC filing
Nearly 2,000 jobs Construction jobs projected in Google’s 2019 filing, not jobs shown to have been created. Minnesota PUC filing
At least 50 jobs Permanent technology-sector positions projected if the facility was built, not realized employment. Minnesota PUC filing

Why did Google pull out?

The public reporting cited here does not establish Google’s internal commercial or technical reason. The documented step was Honeycrisp Power’s failure to provide the notice to proceed by the deadline; Xcel then terminated the service agreements. The Star Tribune reported that Google gave no reason for pulling out.

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Google’s statement, quoted by the Star Tribune on December 21, 2022, was: “While this project isn’t progressing right now, that doesn’t rule out engagement on projects in the future.” That statement left open the possibility of other or later projects; it did not say the Becker facility would resume. Star Tribune report quoting Google

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What about the $20.5 million for Becker infrastructure?

The Star Tribune reported that Minnesota appropriated $20.5 million for Becker industrial-park infrastructure improvements, mainly water and sewer extensions, with construction occurring primarily in 2022 and 2023. The report does not establish how much of the appropriation was ultimately spent, whether all planned work was completed, or how each improvement was used. It therefore does not support saying that the entire sum was spent on Google—or that all of the work was left stranded. Star Tribune report

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Is Google planning other data centers in Minnesota?

Minnesota PUC information lists separate proposals involving Google affiliates in Hermantown and Pine Island. They are distinct projects, not a revival of the Becker proposal. The PUC describes its data-center role as including review of electric service agreements, public notice and comment, reliable service, and protecting ratepayers from infrastructure costs shifted onto them. Minnesota PUC data-center information Minnesota PUC role and process

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