Google has agreed a $3bn power purchase deal with Brookfield Renewable Partners to tap into hydroelectric generation, The Financial Times reported.
This comes as a significant move to secure clean power supply. Even amid surging electricity demand from artificial intelligence and cloud computing infrastructure.
Under the terms of the agreement, Google will procure up to 670 megawatts of hydropower. The hydropower will come from Brookfield’s Holtwood and Safe Harbor facilities in Pennsylvania. Brookfield describes the two 20-year contracts as the largest ever corporate hydropower deal.
The tech group will also have the option to access up to 3 gigawatts of hydro capacity through future projects. Additionally, the power that Google does not use will flow into US electricity markets, supporting grid stability in surrounding regions.
As data centres multiply, consumer advocates have voiced concerns that soaring energy consumption could push up residential utility prices. Industry leaders now promote direct power purchase agreements. This becomes a way for tech giants to fund additional generating capacity and ease pressure on electricity grids.
The transaction underscores Silicon Valley’s broader push to expand AI infrastructure. Not without addressing rising concerns over energy use, of course.
Connor Teskey, president of Brookfield Asset Management, said the deal highlights “the critical role that hydropower can play in helping hyperscale [data centre] customers meet their energy goals”.
A US fiscal bill passed earlier this month extended tax credits for hydropower until 2036. Wind and solar projects must begin construction within the next 12 months or be operational by end of 2027 to remain eligible for comparable incentives.
The International Energy Agency forecasts that by 2030, data processing in the US will consume more energy than several country’s industries combined. Those being the aluminium, steel, cement and chemicali industries. Globally, data centres could require as much as 945 terawatt hours of electricity a year – a tenth of total yearly demand.
