Google Signs Energy Deals With AES and Xcel to Power Data Centers
Alphabet’s Google has expanded its efforts to secure reliable electricity for its growing network of U.S. data centers. On Tuesday, the company announced separate energy supply agreements with AES Corp and Xcel Energy.
Major technology companies are racing to secure dependable and cleaner energy sources as artificial intelligence and cloud computing drive rapid growth in data center demand. This surge in power consumption has pushed utilities to invest heavily in grid upgrades, raising concerns about potential increases in electricity costs for consumers.
Xcel Energy to Power Minnesota Data Center
Xcel Energy signed an agreement to supply power to Google’s new data center in Pine Island, Minnesota. The project will add 1,900 megawatts (MW) of new clean energy capacity to the grid.
According to Xcel, the expansion will not increase costs for existing customers because Google will fully cover the expenses associated with its new service.
The project includes 1,400 MW of wind energy, 200 MW of solar power, and 300 MW of long-duration energy storage. In addition, Google will invest $50 million to support Xcel’s battery storage network development across Minnesota.
AES Signs 20-Year Agreement in Texas
Separately, AES announced a 20-year agreement with Google to provide electricity for a new data center in Wilbarger County, Texas.
Under the deal, AES will develop energy generation facilities co-located with the data center, allowing Google to scale its operations efficiently. The utility will also construct the necessary shared electricity infrastructure to support the project.
Growing Demand for AI-Driven Energy
Google has previously partnered with NextEra Energy to expand its power supply across the United States. Together, the two companies currently have 3.5 gigawatts (GW) of electricity generation in operation or under contract — enough to supply approximately 2.5 million homes.
Other major utilities, including Southern Co and American Electric Power (AEP), also serve Google’s energy needs.
Meanwhile, other technology giants such as Meta, Microsoft, and Amazon Web Services have signed similar long-term power supply agreements as the industry adapts to rising electricity demand driven by artificial intelligence and data center expansion.
