The agreement with Brookfield guarantees 3,000 MW of clean energy at a pivotal moment for the tech sector’s energy growth.
Google has signed a deal valued at $3 billion (about €2.77 billion) to secure 3,000 megawatts of hydroelectric power — its largest commitment to date to ensure low-cost, clean electricity for its expanding AI and cloud computing needs. The deal was finalized with Brookfield Renewable, the renewable energy division of Brookfield Asset Management, and marks the largest contract of its kind ever signed in the hydroelectric sector.
This initial step within the Hydro Framework Agreement (HFA) will deliver 670 MW of carbon-free electricity from the Holtwood and Safe Harbor plants in Pennsylvania. These facilities are part of the PJM interconnected system, which serves over 65 million people in the eastern U.S. and is currently facing significant challenges meeting the energy demand driven by AI.
Google states that this initiative will enable responsible development of the digital infrastructure that powers daily life for individuals, communities, and businesses. The agreement includes not only the utilization of these plants but also their modernization and potential expansion, furthering Google’s commitment to a more sustainable and resilient energy infrastructure.
The Race for Energy in the Age of AI
This strategic move by Google takes place amid growing competition among the tech giants. Meta, a major rival in AI, announced this week plans to invest hundreds of billions of dollars in new gigawatt-scale data center campuses as part of its vision to achieve a “superintelligence” surpassing human capabilities.
The first of these mega centers, named Prometheus, is under construction in Ohio and expected to be operational next year. These data centers, focused on AI workloads, are projected to exponentially increase their water and energy usage.
Local and Environmental Impact
The rise of AI isn’t without controversy. According to figures from The New York Times, a typical data center can use up to 500,000 gallons of water daily. However, new AI infrastructure could surpass a million gallons per day, risking water resource availability for nearby communities and increasing costs in the medium term.
With this investment, Google aims to address these challenges by sourcing energy from a renewable but potentially complex resource. Hydropower depends on river flow, which can be impacted by climate change and environmental pressures, especially in drought-prone regions.
A Global Energy Infrastructure Strategy
The partnership with Brookfield is part of Google’s broader global energy strategy to power 100% of its operations with carbon-free sources — not only offsetting emissions but also ensuring 24/7 matching of consumption with renewable generation.
Meanwhile, other tech giants like Microsoft and Amazon are also making massive investments in renewable power purchase agreements (PPAs), batteries, and highly efficient data centers to keep pace with growth driven by generative AI.
Through this initiative, Google positions itself as a leader not only in AI development but also in designing a cleaner, more resilient, and decentralized energy infrastructure to support the new global digital paradigm.
via: Engadget