February 24 (GeokHub) – AES Corp has signed a 20-year agreement to supply electricity to a new Google data center planned in Wilbarger County, Texas, as utilities move quickly to meet surging power demand driven by artificial intelligence expansion.
The long-term power supply arrangement will support Google’s growing infrastructure needs while also including energy generation facilities co-located with the data center. AES said the project will allow Google to scale its operations in response to rising demand for its cloud and AI-driven services.
Shares of AES edged higher in premarket trading following the announcement.
AI Boom Reshapes Energy Demand
The rapid buildout of AI data centers across the United States has triggered a wave of new power agreements between utilities and hyperscale technology firms. As computing workloads intensify, particularly those tied to AI training and inference, electricity consumption from data centers has climbed sharply.
Utilities are competing to secure long-term contracts with major operators, but the spike in demand has also raised concerns about potential upward pressure on customer power bills and strain on regional grids.
Google said the Texas project will incorporate new clean energy generation alongside the facility. Company executives emphasized that bringing dedicated generation online near the site would help ease pressure on the local grid and stabilize energy costs.
Expanding Energy Partnerships
AES reported that it has signed nearly 12 gigawatts of energy agreements with data center customers to date, with roughly 9 gigawatts structured as direct power purchase agreements with hyperscale companies.
As part of the Texas project, AES will build shared electrical infrastructure required for the co-located generation and data center operations.
The agreement reflects a broader transformation underway in both the energy and technology sectors, where AI growth is increasingly shaping long-term infrastructure investments. With more hyperscale facilities expected in the coming years, partnerships between utilities and tech firms are becoming central to meeting next-generation computing demand.
