American Electric Power (Nasdaq: AEP) has announced plans to invest approximately $4 billion to build a 702-megawatt (MW) fuel cell power facility near Cheyenne, Wyoming, under a 20-year power purchase agreement (PPA) with Google.
The project, structured to meet growing electricity demand from large-scale computing infrastructure, represents a major expansion of AEP’s generation footprint outside its traditional utility service territories.
Under the terms of the agreement, Google will purchase power generated by Cheyenne Fuel Cell, LLC. The entity is owned 92 per cent by AEP, with the remaining 8 per cent held by funds advised by Basalt Infrastructure Partners, LLP.
Construction is scheduled to commence in 2026, with full commercial operations anticipated by the end of 2028.
Key project specifications and technology features include:
- Generation capacity: 702 MW of continuous, on-demand power dedicated to Google’s expanding data center operations in the Cheyenne region.
- Non-combustion fuel cell technology: Utilises advanced fuel cell platforms manufactured by Bloom Energy to generate electricity without burning natural gas.
- Carbon capture integration: Plans incorporate carbon capture and storage infrastructure to deliver near-zero-emissions power.
- Commercial structure: Supported by a long-term 20-year corporate PPA, following related energy agreements established between Google and Black Hills Corp. effective 30 September.
Bill Fehrman, Chairman, President, and Chief Executive Officer of AEP, stated that the partnership highlights how utility operators can deploy new generation technologies rapidly to support large-load corporate customers.
The project underscores a growing trend among major technology companies seeking rapid, high-capacity power solutions to support intensive digital infrastructure while maintaining corporate carbon-reduction targets.
