Google Secures $3 Billion Hydroelectric Deal to Power AI and Cloud Growth
Google has finalized a $3 billion agreement to secure 3,000 megawatts of hydroelectric power, aiming to meet the surging energy demands of its AI and cloud computing platforms with low-cost clean energy. The deal, struck with Brookfield Asset Management’s renewables division, marks the largest hydroelectric power agreement of its kind. The first phase will supply Google with 670MW of carbon-free electricity from Brookfield’s Holtwood and Safe Harbor plants in Pennsylvania.
Under the Hydro Framework Agreement, Google can upgrade or develop existing hydro facilities to expand grid capacity. Initially, the company will focus on the PJM grid, the largest in the U.S., serving 65 million customers. The PJM grid has faced challenges keeping up with the massive power requirements of big tech’s AI projects. Google and Brookfield may later expand their collaboration to other regions. Google emphasized its commitment to responsibly scaling digital infrastructure to support businesses and communities.
The deal arrives as tech giants race to secure energy for AI expansion. This week, Meta announced plans to invest hundreds of billions in gigawatt-scale data centers to develop superintelligent AI systems. One of its upcoming facilities, Prometheus, will be among the world’s largest data centers when it launches in Ohio next year.
However, the rapid growth of AI-focused data centers raises concerns over resource consumption. A typical data center uses about 500,000 gallons of water daily, but AI facilities could push this into the millions. Increased demand may strain local water supplies, leading to higher costs and potential shortages for nearby communities.
Google’s hydroelectric investment highlights the tech industry’s push for sustainable energy solutions amid the AI boom. As competition intensifies, securing reliable, clean power will be crucial for meeting future computing demands.
