Brookfield’s hydro plant powering the Google hydropower deal
Which is a giant leap towards clean energy. New Delhi 16 July 2025 Google, famous for its leading role in the world of technology, has taken its commitment to clean energy to a new peak and has also signed the largest and historic agreement of its kind. The company has made an unprecedented $3 billion deal to purchase hydroelectric power in the United States. This agreement will not only power Google’s data centers but also shows how the biggest technology companies are taking a decisive turn towards sustainable and renewable sources to meet their growing energy needs.
What is this $3 billion deal and this historic agreement has been done between Google and global asset management company Brookfield Asset Management. Under this deal, Google will buy hydroelectric power from Brookfield for the next 20 years. Since it is the world’s largest corporate clean energy agreement of its nature. Which focuses specifically on hydropower. And this agreement focuses on the purchase of electricity from two major hydropower facilities located in Pennsylvania. So that the total capacity of these facilities is 670 megawatts. However, this agreement is part of a broader framework. Under which Google can acquire up to 3 gigawatts (3000 megawatts) of hydropower capacity from Brookfield in the future. And this huge capacity will not only meet Google’s current energy needs but will also address the huge demand for energy arising from the expansion of Artificial Intelligence (AI) and cloud computing in the future.
Google’s role and ambition
So Google has long been an advocate of corporate sustainability as well as clean energy. The company achieved the goal of becoming carbon neutral in 2007 and since 2017 it has been matching its global annual electricity consumption with 100% renewable energy purchases. But the ultimate goal of the company is to run all its operations on 24/7 carbon-free energy (Carbon-Free Energy – CFE) by 2030. This means that every single one of its data centers and offices around the world should be powered by direct carbon-free energy sources every hour of every day.
This latest hydro deal takes Google one step closer to its 24/7 CFE goal. Unlike solar and wind power, which are dependent on weather conditions, hydropower is a stable and reliable energy source that can provide power around the clock. This stability is vital to the uninterrupted operation of Google’s huge and energy-intensive data centers that are the backbone of our digital world. Brookfield’s expertise is reflected in Brookfield Renewable Partners, a subsidiary of Brookfield Asset Management, and one of the largest owners and operators of renewable energy in the world. Their deep expertise and vast portfolio in hydropower makes them an ideal partner for such a large-scale deal. For Brookfield, the deal ensures a long-term and stable revenue source for their hydropower assets. It also provides the capital needed to reinvest and upgrade these facilities.
Talking about the Safe Harbor Hydroelectric Facility,
it is also located on the Saskatchewan River. So that is an important source of electricity for this region. Both these facilities together can provide a generation capacity of about 670 megawatts. This agreement has brought a new life to these plants. So that with the long-term commitment provided by Google, Brookfield will be able to invest in the re-licensing and upgrade of these facilities. This means that these historic assets will continue to produce clean energy for many decades to come and which will support the local economy and improve the reliability of the grid.
At the same time, this agreement is not limited to only these two plants. So that it is the beginning of a comprehensive framework that can expand to include other hydropower assets in the Mid-Atlantic (PJM) and Mid-Continent (MISO) electricity markets. It also allows Google to increase its carbon-free energy supply in key areas of the United States where its data centers are located or may be located in the future. Why is this deal important? Its deeper implications The $3 billion deal is more than just a financial transaction for Google and Brookfield. It has far-reaching and profound implications for the technology industry’s energy sector and the environment as a whole.
Solutions to Artificial Intelligence’s (AI) Growing Energy Hunger
The recent explosion in artificial intelligence (AI) and machine learning has created a demand for unprecedented computing power. Huge and energy-intensive data centers are needed to train and run AI models. According to some estimates, the AI industry’s electricity consumption is growing rapidly and could become a significant portion of the world’s total electricity consumption. This growing demand has put pressure on technology companies to think seriously about their energy supply. Google’s hydropower deal directly addresses this challenge. By purchasing stable and reliable hydropower, Google is ensuring that its AI-powered future growth is based on clean and sustainable energy, not fossil fuels.
The deal is a powerful signal that the technology industry is taking its environmental responsibility seriously. As well as a strategic shift towards stable clean energy, corporate renewable energy purchases until now have been largely focused on solar and wind power. But these are important carbon-free sources. But they also pose a challenge due to their intermittent nature. The sun doesn’t always shine and the wind doesn’t always blow. The deal also marks a strategic shift toward stable clean energy sources. Sources such as hydro, geothermal and advanced nuclear energy can provide 24/7 power, which is essential for the stability of modern power grids and the uninterrupted operation of data centers. This major investment in hydropower by Google may also inspire other companies to diversify their energy portfolios and include more stable carbon-free options.
Revitalization of existing clean energy assets
Constructing new renewable energy projects is important. But it is equally important to recognize and maintain the value of existing clean energy infrastructure. Many hydropower plants in the United States are decades old and require re-licensing and upgrades to continue their operations. The deal presents an innovative model. Which is how corporate buyers can help extend the lifespan of these historic assets. Google’s long-term commitment gives Brookfield the confidence and financial means to make the necessary investments in these plants. This not only preserves existing carbon-free generation capacity, but also creates opportunities to add more clean energy to the grid.
Contribute to the modernization and stability of the grid
Big technology companies are not just consumers of electricity; they are increasingly becoming active participants in shaping the future of the grid. Through this deal, Google is not only buying clean energy for itself but also contributing to the stability and reliability of the overall grid in Pennsylvania and surrounding areas. In addition, Google is also working with the country’s largest grid operator, PJM Interconnection, on using AI to speed up the process of adding new power supplies to the grid. This reflects a symbiotic relationship between the technology and energy sectors, where both are working together to create a more modern, efficient, and cleaner energy system.
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