Google has agreed to invest over $3 billion to procure electricity for its data centres from Brookfield Asset Management’s hydroelectric facilities, with the potential to significantly expand the scale of the agreement. The deal, considered the largest corporate clean energy purchase for hydropower globally, underscores the growing energy demands of major tech firms amid the rise of artificial intelligence.
Under the 20-year contract, Google will source 670 megawatts of capacity from the Holtwood and Safe Harbor plants, located approximately 75 miles southwest of Philadelphia. The deal marks the first in a broader framework that may see Google eventually acquire up to 3,000 megawatts of hydropower from Brookfield, primarily across two interconnected power grids spanning the upper Midwest, Gulf Coast, and mid-Atlantic regions.
Hyperscale developers such as Google, Amazon, Microsoft, and Meta are facing mounting pressure to secure stable electricity supplies, driven by the energy-intensive nature of AI applications. This surge in demand has reignited interest in nuclear power, prompted a major expansion in gas generation, and fuelled record orders for large-scale turbines.
The Brookfield-Google agreement coincides with a broader $70 billion announcement on AI and energy investments expected from the Trump administration. However, US President Donald Trump’s policy decisions—including new tariffs, executive orders, and the phasing out of renewable energy tax incentives—could undermine these initiatives.
Google stated the hydropower purchase will support its data centres while advancing its target of achieving round-the-clock carbon-free electricity. Unlike intermittent renewable sources, hydropower offers consistent, controllable output, making it well-suited to meet Google’s hourly energy-matching ambitions.
Although the Pennsylvania hydro plants already contribute to the local power grid, the new contracts are expected to aid Brookfield in securing licence renewals. Brookfield also indicated it may pursue upgrades or acquisitions to expand its hydro portfolio in line with Google’s future energy requirements.
The agreement follows a similar arrangement Brookfield struck last year with Microsoft to develop over 10.5 gigawatts of wind and solar capacity across the US and Europe between 2026 and 2030.
