Google commits US$25 billion to expand US data centres amid rising clean power demand from AI and cloud
Google has committed to investing $25bn in data centres across Pennsylvania and neighbouring US states over the next two years, as reported by Semafor, following a major power purchase deal aimed at securing clean energy for growing infrastructure demands.
According to Google, the company has signed initial 20-year power purchase agreements with Brookfield Asset Management totalling US$3bn, which will supply electricity from two hydropower facilities in Pennsylvania.
The arrangement will see the facilities upgraded and relicensed as part of the deal, the companies said.
The agreement forms part of a broader initiative that Google described as the world’s largest corporate clean power pact for hydroelectricity, with the potential to secure up to 3 gigawatts of hydropower across the US.
Reuters reports that the company aims to expand the deal beyond Pennsylvania to other parts of the Mid-Atlantic and Midwest.
Amanda Peterson Corio, Google’s head of data centre energy, said, “This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate.”
The company also noted it is working with PJM Interconnection, the largest electricity grid operator in the US, to apply artificial intelligence to speed up the process of integrating new power supplies into the grid.
Over the past year, Google has signed multiple first-of-a-kind power purchase agreements, including for advanced nuclear and carbon-free geothermal energy, according to BNN Bloomberg.
Alphabet president and chief investment officer Ruth Porat discussed the announcement at an AI summit in Pittsburgh, where US President Donald Trump revealed $70bn in planned investments for AI and energy initiatives, as reported by The Guardian.
The surge in clean energy procurement comes amid a sharp rise in electricity demand from the technology sector.
As per Reuters, the expansion of energy-intensive data centres supporting artificial intelligence and cloud computing has driven US power consumption to record highs after nearly two decades of stagnation.
