Google inks US$3 billion hydropower deal in largest clean energy agreement of its kind

A banner hangs during a ceremony announcing a proposed $300 million expansion of Google's data center operations Tuesday, June 2, 2015, in Lithia Springs, Ga. (AP Photo/David Goldman)

Google has agreed to secure as much as 3 gigawatts of U.S. hydropower in the world’s largest corporate clean power pact for hydroelectricity, the company said on Tuesday, as Big Tech pursues the expansion of energy-hungry data centres.

The deal between Google and Brookfield Asset Management includes initial 20-year power purchase agreements, totaling US$3 billion, for electricity generated from two hydropower facilities in Pennsylvania.

The tech giant will also invest $25 billion in data centres across Pennsylvania and neighbouring states over the next two years, Semafor reported on Tuesday.

The technology industry is intensifying the hunt for massive amounts of clean electricity to power data centres needed for artificial intelligence and cloud computing, which has driven U.S. power consumption to record highs after nearly two decades of stagnation.

Ruth Porat, president and chief investment officer at Google parent company Alphabet, is expected to discuss the news at an AI summit in Pittsburgh. 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,” Amanda Peterson Corio, Google’s head of data centre energy, said in a statement.

Over roughly the last year, Google has struck several first-of-a-kind power purchase agreements, including for carbon-free geothermal energy and advanced nuclear. The company is also working with the country’s largest electricity grid operator, PJM Interconnection, to use AI to speed up the process of hooking up new power supplies to the grid.

In the latest deal, Google said it has signed an initial framework agreement with Brookfield, owner of Brookfield Renewable Partners, which develops and operates renewable energy plants.

Its two hydropower sites in Pennsylvania will be upgraded and relicensed as part of the arrangement, the companies said.

Google said it plans to expand the deal eventually beyond those sites to other parts of the Mid-Atlantic and Midwest.

(Reporting by Laila Kearney; Editing by Sonali Paul)