CIOTech Outlook Team | Thursday, 17 July 2025, 03:04 IST
Google has entered into the largest corporate clean energy hydroelectricity deal on record by securing up to 3 gigawatts of U.S. hydropower in partnership with Brookfield Asset Management.
The original deal includes $3 billion worth of 20-year power purchase contracts for electricity produced at two hydropower plants located in Pennsylvania.
The deal is part of Google's plan to power the increasingly growing network of data centers (critical infrastructure for artificial intelligence and cloud computing) with clean energy. Google is also expected to invest $25 billion in data centers over the next two years in Pennsylvania and surrounding states.
This agreement signifies Big Tech's heightened appetite for large amounts of credible, carbon-free energy as AI and digital services drive an increase in electricity usage.
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Ruth Porat, President and Chief Investment Officer of Alphabet (Google's parent company), is expected to reference the partnership at an AI summit in Pittsburgh where a broader investment intention in AI and energy around $70 billion will be made public.
In a statement, Amanda Peterson Corio, Google's Head of Data Center Energy noted, "This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate".
In addition to the development partnership, the agreement also contemplates upgrading and relicensing the two hydro plants and further expanding to other locations in the Mid-Atlantic and Midwest.
Google, which has also entered novel clean energy agreements for geothermal and advanced nuclear power, continues to work with the grid operator PJM Interconnection to use AI to streamline energy integration.
This development is a big leap forward in Google's stated plan to be operationally carbon free by 2030.
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