Energy company AES Corp announced a two-decade partnership with tech giant Google to provide electricity for a new data center facility in Texas. The agreement addresses growing power demands from artificial intelligence operations while aiming to minimize impacts on local energy costs.
Energy provider AES Corp announced Tuesday that it has entered into a two-decade partnership with tech giant Google to provide electricity for a planned data center facility in Wilbarger County, Texas.
The utility company revealed it has also secured additional energy generation contracts that will be positioned alongside Google’s new facility, allowing the technology company to scale up operations to support increased demand for its primary services.
Following the announcement, AES Corp’s stock price climbed 1.2% during pre-market trading hours.
Across the nation, utility companies are actively pursuing contracts with data center operators as the artificial intelligence revolution creates unprecedented electricity demands. However, this increased power consumption has raised concerns about potential increases in utility bills for residential customers.
According to Amanda Peterson Corio, Google’s global head of Data Center Energy, the partnership will introduce new clean energy production capacity directly connected to the facility, which should help reduce pressure on the regional electrical grid while maintaining affordable energy prices.
AES Corp has now secured energy agreements totaling nearly 12 gigawatts with data center clients, with 9 gigawatts of these contracts being direct power purchase agreements with major technology companies.
The energy company stated it will construct the required shared electrical infrastructure to support the co-located facility.
Minnesota Farmer Reflects on Decade of Agricultural Leadership
Delaware State Parks Launches 75th Anniversary Celebration Starting March 1
Meta Strikes Massive AI Chip Deal with AMD Worth Up to $100 Billion