Google has entered into separate agreements with AES Corp and Xcel Energy to secure clean and dependable electricity for its expanding U.S. data centers. The partnerships aim to modernize the grid, support AI-driven growth, and align with clean energy goals, while balancing customer cost concerns and regional economic benefits.
Google is doubling down on its commitment to sustainable and reliable energy by partnering with AES Corp and Xcel Energy. These agreements, announced on February 24, 2026, are designed to ensure that the company’s data centers—critical to powering AI applications and digital services—have access to dependable electricity while advancing clean energy adoption.
Key highlights
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Google’s agreements with AES and Xcel reflect a broader industry trend of tech giants securing long-term energy supply to support AI-driven data center expansion
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AES Corp will provide Google with reliable energy solutions, reinforcing the company’s nationwide infrastructure needs
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Xcel Energy will power Google’s new data center in Pine Island, Minnesota, contributing to local economic growth and supporting Minnesota’s clean energy targets
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The deals are expected to accelerate grid modernization efforts, though concerns remain about potential impacts on customer bills as utilities invest heavily in infrastructure upgrades
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Google’s partnerships underscore its strategy to balance sustainability with operational reliability, ensuring that its data centers remain resilient amid rising energy demands
These developments mark a significant step in Google’s energy strategy, positioning the company as a leader in integrating clean power into large-scale digital infrastructure. As AI adoption continues to surge, such partnerships will be critical in shaping both the future of technology and the evolution of the U.S. energy grid.
Sources: Reuters, The Star, Xcel Energy Newsroom