Google Signs Deals with AES and Xcel to Power Data Centers

The tech giant is securing reliable and clean energy sources to meet growing demand for its services.

Published on Feb. 24, 2026

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Alphabet's Google has entered into separate agreements with U.S. utilities AES Corp and Xcel Energy to power its data centers across the country. The deals will bring new wind, solar, and energy storage capacity to the grid to meet the surging demand for Google's services, particularly driven by the increasing use of artificial intelligence applications. The utilities will build the necessary infrastructure for the co-located facilities, and Google will pay all costs for the new service without raising bills for existing customers.

Why it matters

Big tech firms like Google are under pressure to secure reliable and clean energy sources to power their rapidly expanding data centers. This is driving utilities to invest heavily in upgrading the country's grid, though there are concerns about increasing customer bills. The deals highlight Google's efforts to meet its sustainability goals while supporting the growth of renewable energy capacity.

The details

Xcel Energy will power Google's new data center in Pine Island, Minnesota, adding 1,400 MW of new wind energy, 200 MW of solar power, and 300 MW of long-duration energy storage. Google will also invest $50 million in Xcel's battery storage network across the state. Meanwhile, AES will build shared electricity infrastructure and co-locate energy generation to power Google's new data center in Wilbarger County, Texas under a 20-year agreement.

  • On February 24, 2026, Google announced the deals with AES and Xcel Energy.

The players

Google

Alphabet's subsidiary and a major technology company that operates data centers across the United States.

AES Corp

A U.S. utility company that has signed a 20-year agreement to power a new Google data center in Texas.

Xcel Energy

A U.S. utility company that has signed an agreement to power Google's new data center in Minnesota, adding significant new renewable energy capacity to the grid.

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What’s next

The new data centers and renewable energy projects are expected to come online in the next few years as Google continues to expand its operations and sustainability efforts.

The takeaway

Google's deals with AES and Xcel demonstrate how major tech companies are partnering with utilities to secure reliable and clean energy sources to power their growing data center needs, driving investment in renewable energy infrastructure across the country.