## Google's $3 Billion Hydropower Deal Google has agreed to pay more than $3 billion to source hydropower from Brookfield's facilities in Pennsylvania. The contract includes 20-year power purchase agreements totaling $3 billion for 670 megawatts of capacity from the Holtwood and Safe Harbor dams. This partnership is part of a broader framework allowing Google to secure up to 3 gigawatts of hydropower capacity. ## The Importance of Hydropower Hydropower is a proven renewable energy source offering dependable, carbon-free electricity. It is particularly attractive for tech companies like Google, Meta, Amazon, and Microsoft, which are expanding their data centers and need significant amounts of clean energy to meet their net-zero targets. ## Challenges and Opportunities Large-scale conventional hydro projects are not being built in the U.S. due to space constraints and environmental concerns. However, existing hydro assets are becoming more valuable as interest in clean energy for AI data centers grows. Brookfield, with its extensive hydro assets, is at the forefront of this trend, also having a deal to procure power for Microsoft. ## Investment in Data Centers In addition to the hydropower deal, Google is investing $25 billion in data centers across Pennsylvania and neighboring states over the next two years. This investment underscores the tech industry's need for massive amounts of clean electricity to power AI and cloud computing operations. ## Industry Context The deal between Google and Brookfield marks the largest corporate clean power pact for hydroelectricity. It reflects the technology sector's increasing demand for renewable energy as data centers consume more power. The agreement is also part of a broader effort by tech companies to reduce their carbon footprint while expanding their energy-intensive operations.
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