The AES Corp., a global energy company, has signed an agreement to supply the electricity to power Google’s Virginia-based data centers with 24/7 carbon-free energy under a 10-year supply contract.
With this first clean energy procurement deal in the world of its kind, AES says it will help ensure that the energy powering the data centers will be 90% carbon-free when measured on an hourly basis. AES will become the sole supplier of the data centers’ 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 to supply electricity later in the year and is an important step in meeting Google’s previously announced goal to run its business on 100% carbon-free energy on an hourly basis by 2030.
“Last year, Google set an ambitious sustainability goal of committing to 100% 24/7 carbon-free energy by 2030,” says Andrés Gluski, president and CEO of AES. “We are proud that through our collaboration with Google, we are making 24/7 carbon-free energy a reality for their data centers in Virginia. This first-of-its-kind solution, which we co-created with Google, will set a new sustainability standard for companies and organizations seeking to eliminate carbon from their energy supply.”
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 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, notes the company.
This supply agreement follows the strategic 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.