Alphabet Secures 1.9 GW Power Supply, Invests $50M in Battery Storage
Alphabet signed a 20-year power purchase agreement with AES to supply its Wilbarger County, Texas data center. It also agreed to cover costs for Xcel Energy to deliver 1,900 megawatts of clean power to its Pine Island, Minnesota facility and will invest $50 million in a statewide battery storage network.
1. Xcel Energy Clean Power Deal
Alphabet’s agreement with Xcel Energy covers all costs to deliver 1,900 megawatts of new clean energy to its upcoming Pine Island, Minnesota data center. The utility will not raise rates for existing customers, and Alphabet will invest $50 million to support construction of a statewide battery storage network to stabilize intermittent renewable supply.
2. 20-Year AES Agreement in Texas
Alphabet also sealed a 20-year power purchase agreement with AES to serve its new data center in Wilbarger County, Texas. AES will develop onsite energy generation co‐located with the facility, ensuring dedicated capacity to meet rising demand for Google’s cloud services and core operations.
3. Strategic and Financial Implications
By locking in long-term renewable energy and battery storage, Alphabet aims to secure stable power pricing, enhance grid resilience and advance its carbon-free energy goals. These investments could lower operating costs over the facility lifecycles, boost sustainability credentials and appeal to ESG-focused investors.