Google has signed the world's largest contract for the supply of hydroelectric power for $3 billion. It will be used by data centers

In mid-July 2025, Google and Brookfield Asset Management announced an unprecedented agreement to supply up to 3,000 megawatts (MW) of hydroelectric power to the U.S. This cooperation is aimed at upgrading and expanding existing hydroelectric capacity and will help ensure the sustainable supply of carbon-neutral electricity to the country's electricity grid. The agreement, signed with Brookfield Renewable, will be the first such project to target long-term renewable energy supplies on the scale needed to service the infrastructure of big tech companies. The focus will be on the PJM (Mid-Atlantic Region) and MISO (Central States) markets, where there has been an increase in demand for reliable and sustainable energy sources.

The agreement implies the modernization and extension of the life of existing hydroelectric plants, which will ensure not only sustainable energy supply, but also stimulate the local economy through job creation and infrastructure development. As part of the first contracts implemented, Google will have access to the capacities of Holtwood and Safe Harbor hydroelectric power plants in Pennsylvania, which provide a total of 670 MW of electricity over 20 years. The total cost of these supplies will exceed $3 billion. At the same time, Brookfield stressed that the new deal will not affect the company's current obligations, including energy supplies, for example, for Amtrak, which also uses Safe Harbor's facilities.

𝓲

Фото: Unsplash

Amanda Peterson Corio, Head of Business power engineering specialists data centers at Google, Google said: "At Google, we are committed to the responsible development of digital infrastructure that ensures the daily lives of people and businesses. The cooperation with Brookfield is an important step forward, guaranteeing the supply of clean energy in the PJM region, where we operate. "

At the same time, Connor Teskey, president of Brookfield Asset Management, added: "Our partnership with Google demonstrates the key role that hydropower can play in achieving the energy goals of large corporate customers. To meet the growing demand for electricity caused by digitalization and the development of artificial intelligence, it is necessary to supply energy in large volumes and from a variety of sources. " As noted by the publication Data Center Dynamics, this statement emphasizes the growing dependence of the high-tech sector on stable and sustainable power sources, especially in the context of an increase in computing power and the number of data centers.

While a number of data centres have already used hydroelectric power through common power grids in the past, direct supply contracts (PPAs) remain rare. Therefore, the scale of the deal between Google and Brookfield highlights it among others, especially amid CNBC reports that the agreement with Brookfield is part of Google's larger $25 billion investment in the PJM region, one of the key centers for digital activity in the United States.^[1]

Notes