Google(GOOGL.US) and AES(AES.US) sign a 20-year "co-located power generation" agreement to secure power supply for Texas data centers

CryptoTimes Financial APP has learned that the well-known American energy company AES (AES.US) has officially signed a 20-year power supply agreement with tech giant Google (GOOGL.US), aimed at providing long-term stable energy support for Google’s newly built ultra-large data center in Wilbarger County, Texas.

According to the cooperation details announced by both parties, the project will adopt an innovative “on-site power generation” model. AES plans to directly build and operate dedicated power generation facilities near the Google data center. This model can significantly reduce dependence on and pressure on the local public grid, while improving energy transmission efficiency.

In addition to the 20-year power purchase agreement, AES will also undertake comprehensive energy management responsibilities for the park, including land acquisition, grid interconnection agreements, and shared power infrastructure construction. The two sides also signed a long-term energy management agreement, with AES providing retail services, cost optimization, and related operational support for the park.

“We are expanding our cooperation with Google, demonstrating how AES can accelerate data center development by delivering large-scale electrified land and energy,” said Andres Gruski, President and CEO of AES. He pointed out that the company has signed nearly 12 gigawatts of energy agreements with data center clients, of which 9 gigawatts are direct power purchase agreements with large-scale cloud service providers.

This cooperation comes amid a surge in demand for computing power driven by artificial intelligence technology. Google is ensuring its energy security in the emerging AI park in Texas through this project. Google stated that the new data center in Wilbarger County will form a powerful computing matrix together with its existing Midlothian and Red Oak campuses, strongly supporting the expansion of global cloud services and AI business.

Furthermore, both parties emphasized that by increasing new clean energy capacity, this collaboration can not only meet the energy needs of the tech giant but also help protect local energy affordability, minimizing potential negative impacts on Texas residents’ electricity bills.

Market reaction to this news was positive, with AES stock price rising more than 2% in pre-market trading on the day of the announcement.