Google is investing $25 billion over the next two years to build out AI and cloud infrastructure across the PJM Interconnection. This is the largest electric grid in the U.S., covering 13 states from the Midwest to the Mid-Atlantic. The move is a direct response to increased power demands from artificial intelligence systems and hyperscale data operations.

This expansion marks one of the largest infrastructure expansions in Google’s history, reaffirming the company’s strategy to anchor technological growth in regional energy ecosystems.

Along with the infrastructure buildout, Google has inked a $3 billion deal with Brookfield Asset Management to secure up to 3 gigawatts of U.S. hydropower.

There has not been another corporate agreement for hydroelectric power of this scale.

The contract includes long-term 20-year power purchase agreements and the restoration of two major Pennsylvania hydropower plants. Together, these initiatives show a clear shift in tech infrastructure. Overall growth is directly correlated with clean energy sourcing to meet both performance and sustainability targets.

Why It Matters: Google’s combined investment in infrastructure and renewable energy reflects the new operational reality for tech leaders. CIOs must now manage digital scalability, energy sourcing, environmental impact, and physical power constraints. As AI workloads multiply, this relationship between infrastructure and sustainable energy strategy is becoming a central part of enterprise planning and success.

• $25B Data Center Expansion: Google’s infrastructure investment targets the PJM grid, a vital hub that supports much of the East Coast’s digital economy. By focusing on Northern Virginia and surrounding states, Google is positioning itself near major internet exchanges and urban centers. The scale of the investment signals a long-term commitment to building and operating core AI computing infrastructure near end users. Rather than relying on third-party providers or overseas facilities, Google is choosing to localize its capabilities within key U.S. regions.

• Record Hydropower Deal: Google’s $3 billion agreement with Brookfield secures 3 gigawatts of hydroelectric energy. That’s enough to sustainably power millions of homes. The deal marks a shift toward reliable, carbon-free baseload power. Unlike solar and wind, hydro provides consistent output. AI data centers need 24/7 uptime and a stable energy supply. Hydropower offers a strategic edge in both reliability and emissions performance.

• Modernizing Energy Assets: Two aging hydro plants in Pennsylvania will be upgraded and relicensed. This is part of the clean power agreement. Both plants sit within the PJM grid. That grid is already under strain from industrial and digital growth. The upgrades will add capacity and strengthen reliability. They also support Google’s broader push to invest in local infrastructure and boost resilience in key data regions.

• AI and Grid Integration: Beyond purchasing energy, Google is also collaborating with PJM to use artificial intelligence to streamline the process of integrating new energy sources into the grid. This involves using AI to optimize load balancing, speed up connection timelines, and reduce permitting bottlenecks. The initiative is part of a larger $70 billion national push, involving government and private-sector leaders, to scale both AI and clean energy in tandem.

Go Deeper -> Google to invest $25 billion in data centers and AI infrastructure across largest U.S. electric grid – CNBC

Google inks $3 billion US hydropower deal in largest clean energy agreement of its kind – Reuters