The 20-year Hydro Framework Agreement (HFA), described as the largest clean energy agreement of its kind, underscores the intensifying demand for firm, sustainable energy to support AI and cloud-driven workloads.
The agreement not only reflects a deeper integration between hyperscalers and utility-scale renewable providers, but also highlights the increasingly strategic role of dispatchable clean power – like hydropower – in meeting 24/7 carbon-free energy targets.
Largest corporate hydro deal to date
The deal begins with a long-term procurement of 670MW from Brookfield’s Holtwood and Safe Harbor hydroelectric facilities in Pennsylvania. Future expansions under the framework could unlock further power across both the PJM and MISO transmission networks, potentially reaching the full 3GW ceiling.
Connor Teskey, president of Brookfield Asset Management said the agreement demonstrated hydropower’s evolving relevance to big tech’s energy transition: “Our partnership with Google demonstrates the critical role that hydropower can play in helping hyperscale customers meet their energy goals.”
The sheer scale of the deal makes it a bellwether for both the renewable and data infrastructure sectors. Hydropower, while historically less talked about in clean energy procurement compared to wind and solar, is now being recognised as a high-value asset for firms needing consistent, low-carbon baseload power.
A strategic pillar for 24/7 clean energy
Unlike wind and solar, which are inherently intermittent, hydroelectricity offers the unique advantage of dispatchability, providing power when it’s needed most. This aligns squarely with Google’s long-standing ambition to power its operations with 24/7 carbon-free energy (CFE), a goal that goes beyond annual offsets to ensure every kilowatt-hour consumed is matched in real-time by renewable generation.
Amanda Peterson Corio, Google’s global head of data centre energy, called the deal “a significant step forward”: “Hydropower is a proven, low‑cost technology, offering dependable, homegrown, carbon‑free electricity that creates jobs and builds a stronger grid for all.”
The company, which recently marked the 15th anniversary of its first carbon-neutral pledge, is now ramping up infrastructure to support what Peterson Corio describes as “responsibly growing the digital infrastructure that powers daily life.”
AI demand fuelling grid tensions
The timing of the deal coincides with Google’s announcement of a $25 billion investment in new AI-ready data centre infrastructure across Pennsylvania and surrounding states, an indication of how intertwined hyperscale buildouts and energy planning have become.
Across the board, demand from AI model training and inference, cloud workloads, and digital services is stretching the grid. Some analysts now compare data centre electricity use to that of heavy industry, with capacity pipelines approaching gigawatt scale per site.
To meet this surge, hyperscalers are moving beyond standard PPAs into long-term energy partnerships, shaping generation portfolios and transmission strategies. Google’s deal with Brookfield includes a commitment to use AI tools to optimise grid operations and improve integration of renewables.
This follows similar moves from rivals: Microsoft’s nuclear power contracts and Meta’s growing clean power portfolio underscore a broader industry push for stable, firm zero-carbon energy.
Unlocking hydropower’s next chapter
While hydropower has historically provided a large share of the United States’ clean energy mix, its growth has been limited by geographic constraints and regulatory complexity. However, policy support in the US, specifically clean energy tax credits for hydro that extend through 2036, is changing the calculus.
The Brookfield-Google agreement may prompt further investment in upgrading and digitising existing hydro assets, many of which are decades old. By combining these resources with advanced forecasting and energy optimisation tools, firms are aiming to squeeze more efficiency out of the grid while reducing carbon emissions.
For Brookfield, the deal also demonstrates the value of its North American renewable assets. As one of the world’s largest clean energy investors, Brookfield’s 25GW global renewables portfolio is becoming increasingly relevant as more corporate offtakers seek long-term, zero-carbon power.
Wider implications
For data centre developers and operators, this deal signals a shift from tactical energy procurement to long-term strategic partnerships. It also reinforces the message that not all renewables are equal, technologies offering firm, predictable supply are becoming more valuable in an AI-driven future.
The interplay between digital infrastructure and grid development is also intensifying. With most North American data centre construction now focused on markets with strong transmission links and renewable potential, the ability to secure long-term, clean energy is becoming a decisive factor in site selection.
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