Xcel Energy Draws 6.7 GW of Data Center Requests, Including From Meta and Microsoft

Enormous new electrical demand is an industry-wide trend, but Xcel could attract a disproportionate share of the new load on account of its low energy costs and the availability of water, fiber infrastructure, and open land within its service territory, Frenzel said.

The company experienced a “material shift” in electrical demand during the second quarter as the company lined up new data center prospects, Frenzel said, including already-announced deals with Meta and Microsoft in Minnesota and QTS Realty Trust in Colorado.

Nearly half of the company’s total growth is now coming from tech companies seeking contracts for new data centers, Frenzel said. The other half is coming from a combination of electric vehicles, the electrification of oil and gas production and other industries, and from economic growth.

If all these contracts come to fruition, the growth in demand could exceed 9% per year, Frenzel said, though Xcel CFO Brian Van Able said the company is still in the planning process for these new projects and that more solid numbers would not be available until the third quarter.

Realistically, Xcel does not have 6 GW in spare capacity and so the company will likely need to issue requests for proposals and update its resource plans to add generation in response to growing demand, Frenzel said...

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