Xcel Energy CEO Highlights Benefits of Data Centers for Local Economies and Power Costs
Xcel Energy CEO Bob Frenzel emphasized that the development of data centers can bolster local economies by creating jobs and potentially reducing electricity costs through increased production. A recent survey indicated that 76% of construction market respondents in Minnesota anticipate data center expansion by 2026, with the Twin Cities being particularly attractive due to favorable climate and energy resources. Frenzel also highlighted ongoing challenges related to supply chain issues and the complexities of building necessary transmission lines.
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Xcel Energy CEO Bob Frenzel stated that data center development can positively impact local economies by creating jobs, increasing economic activity, and potentially lowering electricity costs. He explained that adding data centers to the power grid can drive down rates due to increased production through fixed assets.
Frenzel noted a recent survey indicating 76% of construction market respondents in Minnesota expect data centers to expand by 2026. The Twin Cities are attracting data center interest due to cooler climates, high carbon-free energy resources, and good internet connectivity. Frenzel also discussed challenges in supply chains for electrical equipment, which have extended lead times, and the complexities of building transmission lines, including local opposition and cost allocation issues.
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