Google Signs $3 Billion U.S. Hydropower Deal — Largest Corporate Clean Energy Agreement for Data Centres
Google has officially signed the world’s largest corporate hydropower deal, securing up to 3 gigawatts of U.S. hydropower as part of its strategy to power AI-driven data centres with clean energy. The agreement, valued at $3 billion, was announced on Tuesday and marks a major milestone in Big Tech’s pursuit of sustainable energy solutions.
Inside Google’s Historic Hydropower Agreement
Google’s deal is with Brookfield Asset Management and involves 20-year power purchase agreements (PPAs) sourced from two hydroelectric facilities located in Pennsylvania. In addition to securing clean energy, Google plans to invest $25 billion in building and expanding data centres across Pennsylvania and neighbouring states within the next two years, according to reports from Semafor. “This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate,” said Amanda Peterson Corio, Google’s Head of Data Centre Energy.
Why Hydropower Matters for Google’s AI and Cloud Computing Growth
As demand for artificial intelligence and cloud computing skyrockets, energy consumption from U.S. data centres is reaching record highs after years of relatively flat growth. Google’s agreement helps address two key industry challenges:
- Securing reliable, large-scale clean energy sources
- Powering its expanding network of AI and cloud infrastructure sustainably
Hydropower offers consistent, renewable energy that complements Google’s existing clean energy portfolio, which already includes geothermal and advanced nuclear energy agreements.
Broader Investment and Policy Implications
Google’s latest energy and infrastructure moves are expected to be highlighted during an AI summit in Pittsburgh, where Alphabet President and Chief Investment Officer Ruth Porat is scheduled to speak. U.S. President Donald Trump is also slated to attend the event, where officials are expected to announce up to $70 billion in AI and energy-related investments across the United States.
Recent Google Energy Initiatives:
- First-of-Its-Kind Power Purchase Agreements: Google has pioneered carbon-free geothermal and advanced nuclear energy deals.
- AI-Powered Grid Collaboration: Google is working with PJM Interconnection, the largest U.S. electricity grid operator, to streamline how new renewable energy sources connect to the power grid.
Brookfield Renewable Partnership Details
Google’s partner in the deal, Brookfield Asset Management, owns Brookfield Renewable Partners, a global leader in renewable energy development and operations. Under the agreement:
- The two Pennsylvania hydropower facilities will be upgraded and relicensed.
- Google and Brookfield plan to expand the partnership to additional hydropower sites in the Mid-Atlantic and Midwest regions.
Key Takeaways
- Google secures up to 3 gigawatts of hydropower in a $3 billion deal—the largest of its kind globally.
- The company will invest an additional $25 billion into U.S. data centre infrastructure.
- The agreement reflects Big Tech’s growing need for sustainable energy to fuel AI and cloud computing expansion.
- Google continues to diversify its clean energy sources, working alongside PJM Interconnection to innovate grid access using AI.
What This Means for the Future of Tech and Clean Energy
Google’s latest hydropower deal signals a strong commitment to both environmental responsibility and technological advancement. As artificial intelligence and cloud computing demand grow, this type of large-scale clean energy procurement is becoming essential, not just for business continuity, but also for long-term sustainability.
