Google and Xcel Energy to Deploy 300MW / 30GWh Form Iron-Air Battery in Minnesota

Google and Xcel Energy have reached a definitive agreement to deploy a 300MW / 30GWh iron-air battery system in Pine Island, Minnesota, a project set to become the largest battery installation ever announced globally by energy capacity.

The system will use technology developed by Form Energy and will support a new Google data centre. Beyond its size, the deal signals a structural shift in how hyperscale data centres plan to secure reliable, carbon-free power in the AI era.

A Billion-Dollar Signal in the AI Energy Race

Industry sources describe the agreement as a USD 1 billion commitment by Google to Form Energy, one of the largest clean technology transactions in recent years. The scale of the purchase underlines a growing reality: AI expansion is now constrained less by chips and more by electricity.

Training and running large AI models requires continuous, high-load power. Analysts estimate AI workloads could account for 20 percent of total data centre electricity consumption by 2028, up sharply from just 2 percent in 2023. That surge is forcing technology companies to rethink energy procurement strategies.

Unlike conventional four-hour lithium-ion batteries, Form Energy’s iron-air system can store electricity for up to 100 hours. For a data centre, that means riding through multi-day renewable generation gaps or grid disruptions without reverting to fossil fuel backup.

How the Iron-Air System Works

Form Energy’s technology relies on one of the most abundant materials on earth: iron. The battery operates by converting iron into rust when discharging and reversing the process when charging. Oxygen from ambient air drives the reaction.

Each module is roughly the size of a side-by-side washer and dryer unit, containing stacks of metre-tall cells filled with water-based, non-flammable electrolyte. The chemistry is far less energy-dense than lithium-ion, but that trade-off makes it suitable for large, stationary grid installations where footprint is less critical than duration and cost.

Form argues the system can deliver multi-day storage at costs competitive with conventional power plants, positioning it as a firm capacity resource rather than just a short-term balancing tool.

Clean Energy Accelerator Framework

The Minnesota deployment sits under a new regulatory structure described as a Clean Energy Accelerator Charge (CEAC). The framework allows Google to directly cover the costs of its large-load infrastructure without shifting expenses onto residential ratepayers.

Alongside the 300 MW of long-duration storage, the agreement includes:

• 1,400 MW of new wind capacity

• 200 MW of new solar capacity

• USD 50 million investment into Xcel’s Capacity*Connect programme to enhance grid reliability

Google will fund infrastructure upgrades required for its operations and comply with Minnesota’s regulatory standards. The Electric Service Agreement will be submitted to the Minnesota Public Utilities Commission for approval in the coming weeks.

For Xcel, the project strengthens its clean energy portfolio while ensuring that existing customers are insulated from cost impacts.

Manufacturing at Form Factory

The batteries will be manufactured at Form Factory 1 in Weirton, West Virginia. The facility is scaling toward 500MW of annual production capacity by 2028 and benefits from domestic manufacturing incentives under the Inflation Reduction Act.

In 2024, Form Energy raised USD 405 million in Series F funding, including participation from Breakthrough Energy Ventures, backed by Bill Gates. The West Virginia plant is also eligible for up to USD 150 million in federal support through US Department of Energy battery manufacturing programmes, announced by Senator Joe Manchin.

The Google agreement provides revenue visibility that could accelerate Form’s next funding round, with market observers anticipating a potential IPO pathway later this decade.

Competitive Pressure in Big Tech

Google’s move comes amid intensifying competition among hyperscalers to secure firm clean power. Microsoft has pursued advanced nuclear agreements, while Amazon and Meta are expanding renewable and next-generation energy investments.

Corporate power purchase agreements declined approximately 10 percent in 2025 among general buyers, yet data centre-driven procurement continues to rise sharply. The AI boom is effectively propping up renewable energy markets.

Google has also pursued complementary strategies. Recently, France-based TotalEnergies signed 1GW of solar PPAs in Texas to support Google’s operations. The Minnesota project adds the missing layer - long-duration storage capable of keeping renewable-heavy grids stable through extended variability.

Implications for the Long-Duration Storage Market

The global long-duration energy storage market is projected to reach USD 50 billion by 2030 as grids integrate higher shares of renewables. Competitors such as ESS Inc and Ambri have advanced alternative chemistries, but none have secured a deployment at the scale of Google’s Minnesota commitment.

If the project demonstrates that 100-hour batteries can reliably underpin AI infrastructure, it may accelerate the retirement of natural gas peaker plants for data centre backup and redefine clean firm capacity planning across the technology sector.

The Pine Island deployment represents a structural shift in how large technology companies manage energy risk.

As AI systems scale, power reliability is becoming as strategic as semiconductor supply chains. By pairing nearly 2GW of renewables with 30GWh of multi-day storage, Google and Xcel Energy are attempting to build a blueprint for 24/7 carbon-free data centre operations.