AES has inked a 20-year power purchase agreement with Google to deliver renewable energy to the tech giant’s Texas data centers, with supply slated to start in 2025. The contract locks in long-term pricing and ensures a steady offtake of AES’s generation capacity under defined commercial terms.

This deal augments AES’s contracted generation backlog by two decades, providing enhanced revenue visibility and reducing merchant exposure. The multi-year agreement will contribute predictable cash flows, supporting AES’s targets for stable free cash generation and debt reduction.

The partnership underscores AES’s pivot toward customer-specific clean-energy solutions and corporate offtake markets, diversifying its business beyond traditional utility sales. It also strengthens AES’s position in the rapidly growing data-center renewables segment, where long-dated PPAs are in high demand.