Google has struck a significant deal with Brookfield Renewable Partners, an affiliate of Brookfield Asset Management, to purchase up to 3 GW of hydropower generation capacity. This “hydro framework agreement,” announced on July 15, aims to support Google’s ambition of powering its data centers and other operations entirely with carbon-free energy.
The initial contracts under this agreement, spanning 20 years, are for power generated from Brookfield’s Holtwood and Safe Harbor hydroelectric sites in Pennsylvania, boasting a combined capacity of approximately 670 MW. The focus of this deal is primarily on the PJM Interconnection and Midcontinent Independent System Operator (MISO) regions, with the contracts expected to generate over $3 billion in revenue.
Brookfield Renewable, which owns around 21 GW of hydro, wind, solar, and energy storage assets globally, has a project development pipeline of about 69 GW. The company has previously partnered with other tech giants like Amazon, Meta, and Microsoft, with Microsoft recently announcing a deal to purchase over 10.5 GW of renewable energy projects from Brookfield between 2026 and 2030.
This deal aligns with Brookfield’s strategy to provide clean power to technology companies. As part of the agreement, Brookfield will relicense, overhaul, or upgrade its hydroelectric assets to extend their useful life and continue adding power to the grid. Google’s head of data center energy, Amanda Peterson Corio, emphasized the significance of this collaboration, stating, “At Google, we’re dedicated to responsibly growing the digital infrastructure that powers daily life for people, communities, and businesses. This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate. Hydropower is a proven, low-cost technology, offering dependable, homegrown, carbon-free electricity that creates jobs and builds a stronger grid for all.”
Connor Teskey, president of Brookfield Asset Management, highlighted the critical role of hydropower in meeting the energy goals of hyperscale customers, noting that “Delivering power at scale and from a range of sources will be required to meet the growing electricity demands from digitalization and artificial intelligence.”
This deal is part of Google’s broader $25 billion investment into infrastructure in the PJM region. Energy analysts have pointed out that power purchase agreements for hydropower generation in the data center space are relatively rare. However, this move could set a precedent for other tech companies looking to secure reliable, carbon-free energy sources for their operations.
The agreement also allows Brookfield to maintain existing commitments to other power consumers, such as Amtrak, from the Safe Harbor hydro facility. As tech companies continue to explore various energy sources, including nuclear power, natural gas-fired generation, and battery energy storage systems, this deal underscores the potential of hydropower in supporting the energy-intensive data center sector.
The implications of this agreement extend beyond Google and Brookfield. It signals a growing trend among tech companies to invest in diverse, clean energy sources to meet their operational needs while contributing to a more sustainable energy landscape. This could accelerate the development of hydropower projects and encourage other industries to follow suit, ultimately driving innovation and investment in the renewable energy sector.