Google inks $3B deal to buy hydropower from Brookfield

In a significant move to power its rapidly expanding data centers, Google has announced an agreement to purchase over $3 billion worth of carbon-free hydropower from Brookfield Renewable Energy Partners, a company under Brookfield Asset Management. This strategic investment underscores Google’s commitment to sustainable energy sources amidst the burgeoning demands of artificial intelligence.

The initial phase of this extensive partnership involves 20-year power purchase agreements totaling $3 billion. These contracts will secure 670 megawatts of capacity from two key hydropower facilities in Pennsylvania. Furthermore, this deal is part of a broader framework agreement designed to allow Google to source up to an impressive 3 gigawatts of clean energy capacity in the future.

This substantial deal highlights the intense competition among hyperscaler giants like Google, Meta, Amazon, and Microsoft, all vying to secure robust power supplies for their ever-growing data centers. These facilities are critical infrastructure, housing, training, and hosting the advanced AI tools that are driving the current technological boom.

The escalating demand for electricity has spurred renewed interest across various energy sectors. It has breathed new life into nuclear energy, seen a boost in gas-fired generation, and intensified focus on renewable energy solutions. Google itself has committed tens of billions to ensuring its power supply remains uninterrupted. Similarly, Meta has made headlines for effectively acquiring a nuclear power plant, and Microsoft has entered into a 20-year agreement to source power for its AI operations from a nuclear plant adjacent to the infamous Three Mile Island facility.

Beyond simply meeting power requirements, renewable energy offers these tech behemoths a crucial pathway to advance their net-zero targets. This is particularly vital as their rapidly expanding data centers significantly contribute to their overall carbon emissions.

Brookfield Renewable Partners, a prominent operator of renewable energy facilities across the United States, has confirmed that its two Pennsylvania hydropower plants, Holtwood and Safe Harbor, will undergo necessary relicensing, upgrades, or overhauls to align with the new requirements of this landmark deal.

Amanda Peterson Corio, Google’s head of data center energy, commented on the agreement, stating, “This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate. Hydropower is a proven, low-cost technology, offering dependable, homegrown, carbon-free electricity that creates jobs and builds a stronger grid for all.”