Google signs $3 billion US Hydropower Deal in Largest Clean Energy Agreement

Google announced on Tuesday that it had agreed to purchase up to 3 gigawatts (or more) of hydroelectric power in the United States, forming the largest corporate clean energy pact ever for hydroelectricity. This comes as Big Tech continues its expansion of data centers, which are notoriously energy-hungry.

The agreement between Google and Brookfield Asset Management includes initial power purchase agreements totaling $3 billion for electricity generated by two hydropower plants in Pennsylvania.

Semafor, a Tuesday report, said that the tech giant would also invest $25 billion over the next two-years in data centers throughout Pennsylvania and its neighboring states.

After nearly two decades stagnation, the technology industry has intensified its search for large amounts of clean energy to power data centres needed for cloud computing and artificial intelligence. This has pushed U.S. electricity consumption to new records.

Ruth Porat is expected to talk about the news during an AI summit in Pittsburgh. U.S. president Donald Trump will attend the event where $70 billion worth of AI and energy investment is expected to be announced.

Amanda Peterson Corio said that Google's director of data center energy was pleased with the collaboration.

Google has signed several power purchase agreements that are unique, including those for advanced nuclear and geothermal energy. Google is also working closely with PJM Interconnection, the largest electricity grid operator in the United States, to accelerate the process of connecting new power sources to the grid.

Google announced that it had signed an initial framework contract with Brookfield Renewable Partners which is the owner of Brookfield Renewable Partners and develops renewable energy plants.

The companies have said that as part of this agreement, its two hydropower plants in Pennsylvania will receive an upgrade and new license.

Google plans to extend the deal to other areas of the Mid-Atlantic region and Midwest.

(source: Reuters)