Riccardo Liguori Google signs a record $3 billion deal with Brookfield Renewable for long-term hydropower, marking a major step in its strategy to fuel AI and cloud infrastructure sustainably.
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“Our partnership with Google demonstrates the crucial role hydropower can play in helping large-scale data center clients achieve their energy goals.”
—Connor Teskey, President of Brookfield Asset Management
In an era dominated by AI, cloud computing, and ever-hungrier digital infrastructure, Google just made a bold move to secure a cleaner energy future. The tech giant has inked a $3 billion agreement with Brookfield Renewable to lock in long-term access to hydroelectric power—a strategic pivot that goes far beyond simple energy procurement.
The deal, structured through 20-year Power Purchase Agreements (PPAs), will draw electricity from two hydro plants in Pennsylvania—Holtwood and Safe Harbor—and is now considered the largest corporate clean energy agreement in the hydropower sector globally. Initially, Google will tap into up to 670 megawatts (MW) of capacity, with potential to scale up to 3 gigawatts (GW) through upgrades and future projects.
Hydropower: back in the spotlight
This isn’t just a technical transaction. It’s a geopolitical, environmental, and economic statement, too. As reported by the Financial Times, the move signals “a policy and regulatory shift toward ‘firm’ renewable sources”—that is, those capable of delivering stable, weather-independent power output, unlike solar or wind.
Enter hydropower: the old guard of clean energy making a timely comeback. In a world increasingly dependent on uninterrupted digital services, the ability to guarantee power flow regardless of sunshine or wind speed is not a luxury—it’s a necessity.
The AI era is electricity-hungry
And that necessity is becoming urgent. The International Energy Agency (IEA) warns that by 2030, global data centers alone could consume up to 945 terawatt-hours annually. That’s more electricity than what’s currently used by entire industrial sectors like steel, cement, or chemicals.
Hydropower offers not just stability, but a low-emission path forward. Still, Google’s move raises valid questions about the environmental cost of retrofitting aging infrastructure and the potential impact on fragile river ecosystems. Brookfield acquired the Holtwood and Safe Harbor facilities between 2014 and 2015 and now plans modernization efforts that include updated tech and renewed licensing.
Incentives driving the shift
There’s also the matter of policy carrots. A key tax incentive, part of a major fiscal bill signed by former President Donald Trump, extends investment and production tax credits for hydro projects through 2036. That gives hydropower a decade-long competitive edge over wind and solar, which are slated to lose similar benefits after 2027.
It’s no surprise that big players like Google are reading the fine print. These financial tailwinds could usher in a new wave of investment—even as traditional renewables brace for less favorable conditions.
Communities caught in the current
Of course, the social ripple effects shouldn’t be overlooked. The rapid expansion of data centers in the U.S. has already triggered backlash in some regions, where residents worry about rising energy prices and cost-of-living pressures. Direct energy purchase agreements like Google’s allow companies to lock in long-term capacity, effectively bypassing the competitive energy markets—and that has sparked debate about fairness and transparency for everyday consumers.
A wider strategy unfolds
Zooming out, the hydropower deal is just one chapter in Google’s broader energy playbook. The company is also investing in zero-emission geothermal energy and advanced nuclear power, and recently partnered with PJM Interconnection, the largest electric grid operator in the U.S., to integrate more renewables through the use of artificial intelligence.
It’s a future-forward strategy that recognizes a simple, yet often uncomfortable truth: The digital world isn’t green by default. But with deliberate choices, like this hydropower investment, Google is betting it can help reshape that equation—not just with innovation, but with infrastructure.
