Xcel Energy has signed a memorandum of understanding (MOU) with a subsidiary of NextEra Energy to accelerate the delivery of generation resources for large load customers, including data centers, according to a press release.

The agreement expands the companies’ long-standing commercial relationship and will focus on coordinated development of generation, energy storage and associated transmission across Xcel Energy’s service territories.

Xcel said the collaboration will help it better anticipate system needs, streamline development timelines and increase the amount of data center demand it can serve through the 2030s.

Key commercial terms have been agreed, with a formal joint development agreement expected in the coming months. Any future projects would be subject to definitive agreements and regulatory approvals.

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