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AES to supply 24/7 carbon-free energy to Google’s Virginia data centers

Today, the AES Corporation announced it signed an agreement with Google to provide its Virginia-based data centers with 24/7 carbon-free energy. In fact, this agreement consists of a 10-year supply contract.

Accordingly, this is the world’s first clean energy procurement deal of its kind. Therefore, AES will help Google ensure that the energy powering those data centers will be 90% carbon-free when measured on an hourly basis.

Read more of our news content, here: Enel Green Power North America starts construction of 5 renewable projects and 57MW storage systems in the US

AES and Google partner on carbon-free agreement

Today, AES Corporation announced that it signed an agreement with Google to supply its Virginia-based data centers with 24/7 carbon-free energy. Accordingly, this is a 10-year supply contract and the world’s first clean energy procurement deal of its kind.

Moreover, AES (as a sole supplier) will help Google ensure that those centers’ energy power will be 90% carbon-free when measured on an hourly basis.  

In this sense, AES will source energy from a portfolio of wind, solar, hydro, and battery storage resources to be developed or contracted. Thus, the agreement will start supply later in 2021.

Indeed, this is an essential step in meeting Google’s previously announced goal to run its business on 100% carbon-free energy on an hourly basis by 2030.

For the agreement, AES assembled the 500 MW portfolio from a combination of its renewable energy projects and third-party developers. After that, the company selected, sized, and contracted some of them to meet Google’s energy needs across several considerations. For instance, those included cost efficiency, additionality, and carbon-free energy profile.

As a result, the company’s assembled portfolio will require approximately $600 million of investment. Besides, it can generate 1,200 jobs, both permanent and construction, in the host communities.

Outlook and reception

Accordingly, Google expects these efforts to simplify its energy procurement and management significantly at a competitive price. Simultaneously, the Company looks to decarbonize its load and the broader PJM grid.

“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;” said Andrés Gluski, AES President and CEO.

In fact, “this first-of-its-kind solution, which we co-created with Google, will set a new sustainability standard for companies and organizations. Particularly, for those seeking to eliminate carbon from their energy supply.”

“Not only is this partnership with AES an important step towards achieving Google’s 24/7 carbon-free energy goal; but it also lays a blueprint for other companies looking to decarbonize their operations;” says Michael Terrell, Director of Energy at Google.

Therefore, “our hope is that this model can be replicated to accelerate the clean energy transition; both for companies and, eventually, for power grids.” 

Finally, this supply agreement follows the strategic alliance both parties formed in November 2019. In fact, this partnership aimed to leverage Google Cloud technology to accelerate innovation in energy distribution and management. Also, to advance the adoption of clean energy.

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