Xcel Energy

Google is building its first Minnesota data center in Pine Island, utilizing 480 acres to support AI and cloud services. The project includes a significant renewable energy commitment through an agreement with Xcel Energy, facilitating 1,400 MW of wind, 200 MW of solar, and 300 MW of battery storage. While facing some local concerns about environmental impact and resources, the city has approved preliminary plans, anticipating substantial tax revenue. Google pledges to cover all energy costs and grid upgrades, ensuring no additional burden on existing ratepayers.

Xcel Energy (XEL) reported a decrease in third quarter 2025 GAAP diluted earnings per share ($0.88 vs $1.21 in 2024). Year-to-date GAAP diluted earnings also declined ($2.47 vs $2.63). However, third quarter ongoing earnings per share were nearly flat ($1.24 vs $1.25), while year-to-date ongoing earnings increased ($2.84 vs $2.69). Xcel reaffirms its 2025 ongoing EPS guidance of $3.75-$3.85 and initiates 2026 ongoing EPS guidance of $4.04-$4.16, targeting 6-8+% long-term EPS growth and 4-6% dividend growth. A conference call was scheduled to review these results.

Xcel Energy plans a significant expansion of energy infrastructure in Texas and New Mexico to meet a projected 40% surge in electricity demand by 2030. The $5 billion investment includes adding 5,168 MW of capacity through 17 new power projects utilizing wind, solar, battery storage, and natural gas. The initiative aims to boost electric reliability, grid resilience, and economic growth. Regulatory approval is expected in the second half of 2025.