Google's record power deal as AI giants look beyond wind

Google signed the largest deal of its type for clean energy to power data centres as tech giants in the US escalate their search beyond wind and solar.

Google and Brookfield Renewable agreed terms over delivery from 3GW of hydropower from the latter’s US facilities, in what was claimed as a record corporate deal for hydro.

The 20-year power purchase agreement (PPA) underscores the rampant demand for energy to enable the next generation of ‘hyperscale’ AI data centres, which require far more electricity than current facilities.

The Google deal for hydro also continues the trend of tech giants seeking access to large-scale, baseload-style power sources both on and off the grid, as the demands of AI push them to go beyond the agreements with wind and solar farms that have been their go-to source of PPAs for the last few years.

That search for large-scale firm power has led them to explore green alternatives such as geothermal as well as hydro – but has far more notably led to a renaissance of interest in gas and nuclear power.

Industry experts have also warned that the assault on wind and solar in Trump’s ‘Big Beautiful’ budget bill will undermine his stated aim to achieve dominance in energy and AI by scuppering badly-needed wind and solar projects.

Commentary from the Atlantic Council said when the bill passed: “Major hyperscalers have already made commitments to zero-emissions firm power (based on nuclear power and other fuel combinations) for the post-2030 period.

“But with gas turbines largely subscribed through 2028, even integrated power generators, such as NextEra, have made clear that renewables with grid-scale battery storage make up the cheapest and fastest power they can access right away.”

While wind and solar face looming deadlines for the end of tax credit incentives introduced under Joe Biden, the favoured ‘reliable’ power sources of hydro and geothermal were spared for years longer by Trump and his Republican colleagues.

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 digitalisation and artificial intelligence.”