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AES Corp signs a 20-year power supply agreement with Google

AES Corp. announced on Tuesday that it had signed a?20-year agreement with Google to?supply energy to the U.S. technology giant's Wilbarger County data center.

AES has said that it also signed deals with energy generators which will be located?co-located to the new data centers and allow?Google?to expand its operations in order to meet the demand for 'its core services.

The shares of the utility rose by 1.2% during premarket trading.

U.S. ?utilities are racing to sign supply ?deals with data-center operators ?as the artificial-intelligence boom sparks a surge in power demand. However, the demand has stoked fears about rising power bills for customers.

Amanda Peterson Corio is Google's global director of Data Center Energy. She said that the deal will bring clean energy online along with the facility. This would?reduce strain on the local power grid and help?keep?energy costs under control.

AES has already signed agreements for a total of?12 Gigawatts of energy. Of these, 9 GW are directly with hyperscalers.

AES has said that it will build the necessary shared electricity infrastructure to power the facility. (Reporting and editing by Leroy Leo, Shakesh Kuber, and Katha Kalia from Bengaluru)

(source: Reuters)