AES signed an agreement to supply Google’s Virginia-based data centers with 24/7 carbon-free energy under a 10-year supply contract.
According to AES, the transaction will result in construction of around 500 MW of renewable energy and storage projects to ensure Google’s Virginia-based data centers will be 90% carbon-free when measured on an hourly basis.
AES put together the 500 MW portfolio from a combination of the company’s own renewable projects and those of third party developers, which were selected, sized and contracted to meet Google’s energy needs. The portfolio is expected to require $600 million in investment and generate 1,200 jobs, both permanent and construction, in the host communities.
The company said that these efforts will simplify Google’s energy procurement and management at a competitive price while decarbonizing Google’s load and the broader PJM grid. The agreement will start supply later in 2021 and is a step in meeting Google’s previously announced goal to run its business on 100% carbon-free energy on an hourly basis by 2030.
In 2019, AES and Google formed a strategic partnership to leverage Google Cloud technology to accelerate innovation in energy distribution and management and advance the adoption of clean energy.
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