Google has signed a £3 billion ($3.9 billion) agreement with Brookfield Asset Management to secure 3,000 megawatts of hydroelectric energy. This move is aimed at meeting the increasing power demands of its AI and cloud services with affordable, clean energy. Brookfield’s renewables division confirmed that the agreement marks the largest hydroelectric power deal of its kind. The first phase will supply Google with 670MW of carbon-free energy from Brookfield’s Holtwood and Safe Harbor hydro plants in Pennsylvania.

Under the Hydro Framework Agreement (HFA), Google has the ability to upgrade or develop these facilities further, reinforcing its commitment to expanding clean energy access. The company’s initial focus will be on the PJM grid—the largest in the U.S., serving 65 million people—which is currently under strain from the growing energy demands of major tech firms’ AI initiatives. The partnership may eventually expand into other regions as well. Google stated that it is focused on “responsibly growing the digital infrastructure that powers daily life for people, communities and businesses.”

This announcement comes just days after Meta revealed plans to invest hundreds of billions of dollars into massive, gigawatt-scale AI data centers. Meta’s first such facility, called Prometheus, is set to open in Ohio next year and will be among the largest in the world.

As data centers become more AI-focused, their environmental impact is growing. While a standard data center uses about 500,000 gallons of water daily, next-generation AI complexes could require several million gallons each day. This escalating demand raises concerns about future water shortages and rising costs for nearby communities, according to a recent report from The New York Times.