AES signs 10-year deal with Google to provide carbon-free energy

The AES Corp. signed a deal with Google to supply electricity for its data centers in Virginia with carbon-free energy.

This 10-year contract is the first clean energy deal of its kind, AES officials said. AES has ensured that 90 percent of the energy powering those data centers will be carbon-free when measured on an hourly basis. AES will source energy from a portfolio of wind, solar, hydro, and battery storage resources. It is a key part of Google’s goal to run its business on 100 percent 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. Today, 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,” Andrés Gluski, AES President and CEO, said. “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 will start supplying Google with energy this year. AES has assembled a 500 MW portfolio that includes the company’s own renewable energy projects as well as those from third-party developers. The portfolio assembled by AES is expected to require approximately $600 million of investment and generate 1,200 jobs.

“Not only is this partnership with AES an important step towards achieving Google’s 24/7 carbon-free energy goal, it also lays a blueprint for other companies looking to decarbonize their own operations,” Michael Terrell, director of energy at Google, said. “Our hope is that this model can be replicated to accelerate the clean energy transition, both for companies and, eventually, for power grids.”

AES and Google formed a strategic alliance in November 2019 to leverage Google Cloud technology to accelerate innovation in energy distribution and management.