Paperwork decision scraps Google's $600m Minnesota datacenter project
- Reference: 1671737853
- News link: https://www.theregister.co.uk/2022/12/22/google_minnesota_datacenter/
- Source link:
"We are proud to be part of the Minnesota community and remain committed to growing the industry and jobs in the state," a Google spokesperson told The Register . "While this project isn't progressing right now, that doesn't rule out engagement on projects in the future."
The facility, first announced in 2019, was effectively ended after Google partner Honeycrisp Power failed to file the necessary paperwork for Xcel Energy to provide the power for the project, The local Star Tribute [1]reported this week. In response, the Minnesota-based utility terminated its electric service agreements with Google earlier this month.
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The Tribune reports that, when complete, the facility would have rested on approximately 300 acres of land, employed 50 permanent workers, and had a price tag of $600 million. But without electricity the data won't flow. In a statement, Google told the Tribune that “while this project isn’t progressing right now, that doesn’t rule out engagement on projects in the future.”
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Google’s decision to pull out of the datacenter project may be in response to the economic headwinds now threatening the internet empire’s profit margins. In Q3, Alphabet — Google’s parent company — saw its profits slip $6 billion dollars to $13.9 billion, well below analyst estimates, although still making over $154 million a day in profit.
[5]Google datacenters use 'a quarter of all water' in one US city
[6]Meta freezes development of $1.5B Alabama datacenter pending redesign
[7]Google's Alphabet to review every project after $6bn decline in profits
[8]Meta axes two Danish datacenters amid shift to AI infrastructure
In the wake of the weaker than usual quarter, Alphabet CEO Sundar Pichai committed to [9]reevaluating all of the company’s ongoing projects.
“We are reviewing projects at all scales pretty granularly to make sure we have the right plans there, and based on that, the right resourcing and making course corrections,” he said at the time. “It is something we’ll continue doing going into 2023.”
Google isn’t the only hyperscaler cutting fat. Earlier this month, Meta [10]terminated two of three datacenters under construction in the Odense region of Denmark and put a $1.5 billion project in Huntsville, Alabama, on [11]indefinite hold as part of a redesign.
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The decision came after Meta [13]laid off 13 percent of its global workforce and announced plans to invest heavily in artificial intelligence to extract more value from its core advertising business and advance its vision for the Metaverse. ®
Get our [14]Tech Resources
[1] https://www.startribune.com/google-pulls-out-of-deal-to-build-600m-data-center-in-becker/600237773/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y6ThjfQR5moz66ykpla5ZAAAAJg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y6ThjfQR5moz66ykpla5ZAAAAJg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y6ThjfQR5moz66ykpla5ZAAAAJg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2022/12/19/google_datacenters_dalles/
[6] https://www.theregister.com/2022/12/20/meta_datacenter_alabama/
[7] https://www.theregister.com/2022/10/26/google_reviewing_every_project_after/
[8] https://www.theregister.com/2022/12/16/meta_cans_danish_datacenters/
[9] https://www.theregister.com/2022/10/26/google_reviewing_every_project_after/
[10] https://www.theregister.com/2022/12/16/meta_cans_danish_datacenters/
[11] https://www.theregister.com/2022/12/20/meta_datacenter_alabama/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y6ThjfQR5moz66ykpla5ZAAAAJg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://www.theregister.com/2022/11/09/meta_redundancies_mark_zuckerberg/
[14] https://whitepapers.theregister.com/
"partner Honeycrisp Power failed to file the necessary paperwork"
Well, I I guess we will find out who Google's NEW power partner will be next week...
No lack of power in the area, but...
Google may not necessarily want it since it's certainly not "green" enough.
Becker (in Sherburne County) is home to SherCo, a massive coal-fired plant. Biggest property-tax payer for the city, fed with North Dakota coal arriving by the trainload (same tracks as Amtrak's "Empire Builder" service from Chicago, IL to Seattle, WA/Portland, OR).
On the other side of the Mississippi River is Monticello (Wright County), with their venerable boiling-water nuclear power plant. Whether that's "better" or "worse" with regards to pollution is debatable, but it is definitely due for a major refurbishment if not termination.
Either way, with US Highway 10 (Becker) or Interstate 94 (Monti), there is bound to be some nice data capacity nearby, not mention an entire river for water cooling (Monti Nuke uses it; not sure about SherCo).
(Me, grow up near there? Whatever gave you THAT idea?)
We have a spare 1.2 GW
A previous government started to build a dam, which was too expensive for the next government to cancel - so we're building it even though they both agree there is no market for the power.
Of course there is no point in building a data center in Canada - until we get broadband