AES Corp said on Tuesday it has signed a 20-year agreement to supply power to Google’s new data center planned in Wilbarger County, Texas. The arrangement covers both long-term power delivery and the construction of energy generation assets that will be sited alongside the data center.
Under the agreement, AES will develop the shared electrical infrastructure required for the co-located facility. Company officials said the generation and distribution work will enable Google to scale operations to meet demand for its core services.
AES shares rose 1.2% in premarket trading on the news.
The transaction comes amid heightened activity in the utility sector as U.S. power companies move to sign supply agreements with data-center operators. That demand has surged in part because of increased AI computing capacity, creating new loads for regional grids and prompting utilities to lock in long-term contracts.
Google’s global head of Data Center Energy, Amanda Peterson Corio, commented on the deal, saying it would bring new clean generation online adjacent to the facility, reduce strain on the local grid, and help keep energy costs in check.
AES also noted it has now signed deals for nearly 12 gigawatts of energy with data-center customers, with roughly 9 gigawatts of that total structured as power purchase agreements directly with hyperscalers.
Company statements emphasized AES’s role in building the shared electricity infrastructure for the co-located facility, which the company said is part of its broader push into large-scale supply arrangements for hyperscale data operators.
Summary
AES will supply power to Google’s planned Wilbarger County data center under a 20-year contract that includes on-site generation and shared infrastructure. The deal is part of AES’s portfolio of data-center agreements, which totals nearly 12 gigawatts, including about 9 gigawatts of direct power purchase agreements with hyperscalers. The agreement is intended to increase available clean generation, ease local grid strain, and help manage energy costs.
Key points
- AES signed a 20-year power-supply agreement with Google for a data center planned in Wilbarger County, Texas.
- The deal includes co-located energy generation and shared electrical infrastructure to support Google’s capacity expansion.
- AES has nearly 12 GW of signed deals with data-center customers, with about 9 GW as direct power purchase agreements with hyperscalers; the announcement coincided with a 1.2% premarket rise in AES share price.
Risks and uncertainties
- Rising power demand tied to AI and data-center growth has raised concerns about higher customer electricity bills, a dynamic noted in the market response to increased procurement by utilities.
- Utilities are actively competing to secure supply contracts with data-center operators, creating a crowded market for long-term power arrangements between incumbents and hyperscalers.