Previously, the company secured approval from regulators in Minnesota and North Dakota to purchase power from the Courtenay project under a power purchase agreement with Geronimo Energy.
Geronimo, however, terminated the project.
Xcel plans to undertake the project discontinued by Geronimo.
The 100-turbine Courtenay project is expected to create about 200 construction jobs and provide approximately $850,000 in annual tax revenue to local governments.
Northern States Power president Chris Clark said: "The Courtenay project is an important part of our aggressive plans to reduce carbon emissions and double our commitment to renewable energy resources in the most cost-effective way possible.
"The Courtenay Wind Farm has the added value of locating an important generation resource in North Dakota, an important part of our service territory."
Subject to approval, the Courtenay wind farm is scheduled to be commissioned by the end of 2016.
Xcel previously set a target to generate more than 60% carbon-free power by 2030, by doubling renewable energy resources and scaling back the use of coal.
"We know our customers want to reduce the environmental impact of energy production while keeping costs affordable, and our plan to acquire the Courtenay Wind Farm project helps us meet those expectations," Clark added.
