AES signs 20-year PPA with Google for Texas data center

By Global Infrastructure Sherpa · Feb 24, 2026

Ppa Renewable signed Texas, United States Feb 24, 2026

AES has secured a 20-year power purchase agreement (PPA) to supply a new Google data center in Texas with renewable energy. The agreement involves the installation of renewable energy projects near the data center, enabling Google to expand its operations while minimizing the impact on the local power grid. This initiative, termed "energy first" by Google, allows the data center to operate using its own generation, reducing the need for new infrastructure and optimizing the use of the existing grid. AES will operate the assets and provide retail services, cost optimization, and related solutions for Google's data center campus.

Deal Analysis

AES's 20-year PPA with Google to power a new data center in Texas represents a significant commitment to renewable energy procurement within the technology sector. The "energy first" approach, where renewable energy projects are installed near the data center to minimize grid impact, highlights a growing trend among large energy consumers to prioritize on-site or near-site generation for sustainability and grid stability. AES will operate the assets and provide retail services, cost optimization, and related solutions for Google's data center campus. This deal underscores the increasing sophistication of corporate renewable energy strategies, moving beyond simple procurement to integrated solutions that optimize energy usage and reduce infrastructure burdens. The agreement is notable due to the involvement of two major players: AES, a global power company with a strong renewable energy portfolio, and Google, a leading technology company actively pursuing carbon-free energy solutions. Google's previous experience with PPAs, including a significant agreement with Clearway, demonstrates its ongoing commitment to renewable energy. The long-term nature of the PPA (20 years) provides AES with revenue certainty and supports the development of new renewable energy projects in Texas. While the financial value of the deal is undisclosed, the scale of Google's data center operations suggests a substantial investment in renewable energy infrastructure.

20-year PPA provides long-term revenue certainty for AES.
Google's 'energy first' approach minimizes grid impact and optimizes energy usage.
Involves two major players: AES (developer) and Google (offtaker).
Located in Texas, a key market for renewable energy development.

Market Context: The renewable energy sector is experiencing rapid growth, driven by increasing demand from corporations seeking to reduce their carbon footprint and government policies promoting clean energy. Texas is a particularly attractive market for renewable energy development due to its abundant resources and favorable regulatory environment. PPAs are a common mechanism for corporations to secure long-term access to renewable energy and support the development of new projects.