Google's $3 Billion Hydropower Deal with Brookfield

Google Secures $3 Billion in Hydropower for Data Centers

In its ongoing effort to expand its data center infrastructure, Google has announced a substantial agreement to procure carbon-free hydropower. The company will invest over $3 billion through a partnership with Brookfield Renewable Energy Partners, a subsidiary of Brookfield Asset Management.

Initial Power Purchase Agreements

The initial phase of this collaboration involves 20-year power purchase agreements totaling $3 billion. This investment will secure 670 megawatts of capacity from two hydropower plants situated in Pennsylvania.

This agreement represents a component of a larger framework. It will ultimately enable Google to access up to 3 gigawatts of capacity overall.

Growing Demand from Hyperscalers

Google’s pursuit of additional power sources mirrors the needs of other major hyperscalers, including Meta, Amazon, and Microsoft. These companies require increasing amounts of energy to support their rapidly growing data centers.

These facilities are crucial for housing, training, and operating the artificial intelligence tools driving the current technological advancements.

Impact on Energy Markets

The heightened demand for power is influencing various energy sectors. It is revitalizing interest in nuclear energy, increasing gas generation, and reinforcing the importance of renewable energy sources.

Significant investments are being made across the industry to guarantee sufficient power availability. For example, Meta has effectively acquired a nuclear power plant, and Microsoft has established a 20-year power supply agreement with a nuclear facility.

Renewable Energy and Net-Zero Goals

Beyond simply securing power, renewable energy sources offer these companies a pathway to achieve their net-zero emission targets. This is particularly important given the increasing carbon footprint associated with their expanding data center operations.

Hydropower Plant Upgrades

Brookfield Renewable Partners, a leading operator of renewable energy facilities in the U.S., will undertake necessary upgrades to its Holtwood and Safe Harbor hydropower plants in Pennsylvania. These upgrades will include relicensing, modernization, and potential overhauls to align with the new contractual requirements.

Google’s Statement

Amanda Peterson Corio, head of data center energy at Google, emphasized the significance of the partnership. “This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate.”

She further highlighted the benefits of hydropower, stating it is a “proven, low-cost technology, offering dependable, homegrown, carbon-free electricity that creates jobs and builds a stronger grid for all.”