Google (GOOGL) has reportedly paid about $1 billion to U.S. energy startup Form Energy for a massive iron-air battery system to support its new data center in Minnesota. The project combines wind, solar, and long-duration battery storage to power Google’s first data center in the state. The large-scale investment could support Alphabet’s long-term growth, though stock prices have yet to reflect the development.
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Google Backs 100-Hour Battery to Power Data Center
Google is partnering with Xcel Energy (XEL) to build 1.4 gigawatts of wind power and 200 megawatts of solar power to supply the new Pine Island facility. Leading the project is a 300-megawatt iron-air battery from Form Energy capable of delivering electricity continuously for 100 hours.
Unlike traditional lithium-ion systems, Form Energy’s technology stores energy by rusting iron and reversing the process with oxygen from the air. While less efficient than lithium-ion batteries, iron-air systems are significantly cheaper and designed for long-duration storage, making them well-suited to stabilize renewable energy output. At 30 gigawatt-hours, the installation is expected to be the largest battery project of its kind.
The sizable investment comes as demand for reliable, clean energy infrastructure rises alongside AI-driven data center expansion. Despite the announcement, Google shares are trading around $312.90, down roughly 0.3%.
Clean Energy Investment Could Support Long-Term Growth
Following the $1 billion deal, Google has structured a new contract with Xcel Energy, the Clean Energy Accelerator Charge (CEAC), which allows utilities to adopt innovative renewable projects without shifting costs to local customers. The agreement includes support for Xcel’s Capacity Connect Program, which deploys smaller batteries to strengthen grid resilience.
Mateo Jaramillo, CEO of Form Energy, said the private company is raising a $500 million round and has raised $1.4 billion to date, with plans to go public next year. Notably, Form Energy manufactures its iron-air batteries at a factory in West Virginia, highlighting the scale of its operations and its role in delivering long-duration storage for Google’s Pine Island facility.
Is Google a Good Stock to Buy?
According to TipRanks stock data, GOOGL holds a “Strong Buy” consensus rating. The stock is currently trading at $308.4, with an average price target of $382.81, representing an upside potential of 24.17%.
