Google’s Virginia-based data centers will use 24/7 carbon-free energy under a 10-year supply contract with the AES Corporation. AES will become the sole supplier of the data centers’ carbon-free energy needs on an annual basis, sourcing energy from a portfolio of wind, solar, hydro, and battery storage resources to be developed or contracted by AES. The agreement will start supply later in 2021 and is one step in meeting Google’s previously announced goal to run its business on 100% carbon-free energy on an hourly basis by 2030.
AES assembled the 500 MW portfolio from a combination of AES’ own renewable energy projects and those of third-party developers, which were selected, sized and contracted to meet Google’s energy needs across a number of considerations, including cost efficiency, additionality and carbon-free energy profile. The portfolio assembled by AES is expected to require approximately $600 million of investment and generate 1,200 jobs, both permanent and construction, in the host communities. These efforts will greatly simplify Google’s energy procurement and management at a competitive price while decarbonizing Google’s load and the broader PJM grid.
This supply agreement follows on the alliance AES and Google formed in November 2019 to leverage Google Cloud technology to accelerate innovation in energy distribution and management and advance the adoption of clean energy.