Technology giant Google announced the company will buy as much as 3 GW of hydropower generation capacity from Brookfield Renewable Partners, an affiliate of Brookfield Asset Management. The companies on July 15 said the deal is a “hydro framework agreement” that will support Google’s goal of having data centers and other operations run continuously on carbon-free power.
The companies on Tuesday said the first 20-year contracts under the deal are for generation from Brookfield’s Holtwood and Safe Harbor hydroelectric sites in Pennsylvania, which together have about 670 MW of capacity. Google and Brookfield said the initial focus of the deal would be in the PJM Interconnection and Midcontinent Independent System Operator (MISO) regions, with the contracts expected to bring more than $3 billion in revenue.
Brookfield said the agreement aligns with its strategy to provide clean power for technology companies. The company has deals with other major tech groups, including Amazon, Meta, and Microsoft. A deal announced May 1 said Microsoft would purchase more than 10.5 GW of renewable energy projects from Brookfield Asset Management and Brookfield Renewable between 2026 and 2030.
Google in late June said it has a deal to buy nuclear power from a planned fusion energy plant in Virginia.
Officials with Brookfield Renewable said the company owns about 21 GW of hydro, wind, solar, and energy storage assets worldwide. The company said it has a global project development pipeline of about 69 GW.
Relicensing, Upgrading Hydro Sites
Hydroelectric assets will be relicensed, overhauled, or upgraded to extend the assets’ useful life and continue adding power to the grid, according to the agreement.
Amanda Peterson Corio, head of data center energy from Google, in a statement said, “At Google, we’re dedicated to responsibly growing the digital infrastructure that powers daily life for people, communities, and businesses. This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate. Hydropower is a proven, low-cost technology, offering dependable, homegrown, carbon-free electricity that creates jobs and builds a stronger grid for all.”
Connor Teskey, president of Brookfield Asset Management, said, “Our partnership with Google demonstrates the critical role that hydropower can play in helping hyperscale customers meet their energy goals. Delivering power at scale and from a range of sources will be required to meet the growing electricity demands from digitalization and artificial intelligence.”
Brookfield noted the structure of the transaction enables the company to maintain existing commitments to other power consumers (including Amtrak) from the Safe Harbor hydro facility. The deal with Brookfield is part of Google’s wider $25-billion investment into infrastructure in the PJM region.
Energy analysts have noted that power purchase agreements for hydropower generation for the data center space are considered rare. Aruba, an Italian company, has been a pioneer in that space, acquiring eight small hydro plants to provide electricity for its sites in Bergamo, Italy.
Several tech companies have previously announced plans to use nuclear power and natural gas-fired generation, along with renewable energy and in some cases coal, to support their data center operations. Some companies also are looking at having battery energy storage systems available to help provide power for the energy-intensive sites.
—Darrell Proctor is a senior editor for POWER.