Google’s $3 billion US Hydropower Deal, World’s Largest Corporate Clean Power Pact

Google made shockwaves as it inked $3 billion US hydropower deal in its largest clean energy agreement of its kind. The firm agreed to secure as much as 3 gigawatts of U.S. hydropower. The agreement signified the world’s largest corporate clean power pact in hydropower. The aim of the signing is to facilitate the pursuit of the expansion of energy-hungry data centers. The deal between Google and Brookfield Asset Management included initial 20-year power purchase agreement. It also entailed agreements on electricity generated from two hydropower facilities in Pennsylvania.

The tech giant is also expected to invest $25 billion in data centers across Pennsylvania and neighboring states over the next two years. The move comes as technology industries are intensifying the hunt for massive amounts of clean electricity to power data centers. The energy is needed for artificial intelligence and cloud computing which has driven U.S. power consumption. Ruth Porat, president and chief investment officer at Google parent company Alphabet, is expected to discuss the news at an AI summit in Pittsburgh. Google’s drive to include renewable energy in their projects does not stop at hydropower, as they explore other avenues in geothermal. Firms such as Baker Hughes are taking up the challenge to provide the tech companies with the much needed power as they partner in developing one of the world’s largest geothermal project in California.

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The Significance of Google’s Hydropower Deal

The significance of Google hydropower deal is expected to raise the bar in the implementation of AI in the U.S. President Donald Trump is scheduled to attend the event, where $70 billion in AI and energy investments are expected to be announced. “This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate,” noted Amanda Peterson Corio, Google’s head of data center energy. Over roughly the last year, Google has struck several first-of-a-kind power purchase agreements.

These include carbon-free geothermal energy and advanced nuclear energy projects. Moreover, the company is working with the country’s largest electricity grid operator, PJM interconnection. Through this, it will use AI to speed up the process of hooking up new power supplies to the grid. Brookfield’s two hydropower sites in Pennsylvania will be upgraded as part of the deal. They will also be relicensed as part of the arrangement. Furthermore, Google noted it plans to expand the deal eventually beyond those sites to other parts of the Mid-Atlantic and Midwest.

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