North America |
Forming a strategic partnership
Co-locating digital infrastructure with hydropower facilities can be advantageous for both industries
Above: Google has signed a framework agreement with Brookfield for the delivery of hydropower to the technology sector © Tada Images/
Shutterstock.com
THE US HYDROPOWER INDUSTRY is beginning to take bolder steps into the digital age, with Brookfield and Google undertaking a first-of-its-kind Hydro Framework Agreement (HFA). The signing of over US$3 billion of contracts means that Brookfield’s Holtwood and Safe Harbor hydroelectric facilities in Pennsylvania will deliver up to 3000MW to the technology sector, supporting Google’s ambition to power its operations with 24/7 carbon-free energy. Described as being the world’s largest corporate clean power deal for hydroelectricity, Brookfield says the HFA represents a significant step forward in its strategy to deliver flexible, dispatchable clean energy solutions.
“Our partnership with Google demonstrates the critical role that hydropower can play in helping hyperscale customers meet their energy goals,” Connor Teskey, President of Brookfield Asset Management, commented: “Delivering power at scale and from a range of sources will be required to meet the growing electricity demands from digitalisation and artificial intelligence.” Under the HFA, Google has the ability to procure carbon-free electricity from up to 3000MW of hydroelectric assets that will be relicensed, overhauled, or upgraded to extend the asset’s useful life and continue adding power to the grid. The first contracted assets consist of hydroelectric facilities in Pennsylvania that Brookfield is relicensing. Brookfield and Google will initially focus in the mid-Atlantic(PJM) and mid-continent (MISO) electricity markets, with the flexibility to expand into other US regions. The 20-year Power Purchase Agreements for the
Below: Hydroelectricity will power a new AI computing facility in Wisconsin, US
hydro facilities will support Google’s operations across PJM. The transaction structure allows Brookfield to maintain existing commitments to power consumers, such as national passenger railroad company Amtrak, from the Safe Harbor facility.
“At Google, we’re dedicated to responsibly growing the digital infrastructure that powers daily life for people, communities and businesses,” Head of the company’s Data Centre Energy, Amanda Peterson Corio, said. “This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate.”
Co-locating The explosive demand for digital infrastructure
fuelled by AI, bitcoin mining, and cloud computing services, has created a powerful new opportunity for co-locating data centres with hydroelectric generation assets, according to Andrew Webber,
18 | September 2025 |
www.waterpowermagazine.com References
https://www.hydro.org/powerhouse/article/how-hydro- and-data-centers-are-pairing-to-create-unique-value/
CEO of Digital Power Optimisation. Together, he believes, the data centre and hydropower industries can form a strategic partnership. Indeed, co-location will allow hydropower
operators to generate stable, long-term revenues from digital workloads, while enabling data centre operators to access hydro power at competitive prices. Such an example is highlighted by a midwestern hydro facility, where a flexible computing deployment used over 43% of its hydropower generated in 2024. This produced revenue calculated at 257% more than what would be earned by selling into the grid.
In February 2025, Digital Power Optimisation and Consolidated Water Power Company (CWPCo) announced a collaborative effort to develop a 20MW AI computing facility in Wisconsin Rapids, Wisconsin. So as to not cause extra strain on the power grid, the AI data centre is being sized appropriately to make use of the 20MW of power readily available from CWPCo’s system of five hydroelectric projects. Furthermore, the project doesn’t require new transmission corridors, expensive upgrades, or land use changes beyond what is already in place. Webber disputes that fact that data centres are
often described as ‘energy hogs that provide little local value while straining regional infrastructure’. Although he adds this may may apply in rare instances, in many cases, the hydroelectric facilities being used were originally constructed to power loads that no longer exist due to the closures of manufacturing plants, steel production, paper and pulp mills, and many other industrial operations over the past. Over the past 70 years, this has left many hydro owners desperately seeking new load rather than having too much, he claims. And with regards to the DPO and CWPCo’s
project, Webber says this will enhance grid stability by offering a predictable, steady baseload demand, which helps absorb generation during off-peak hours. Claiming there could be hundreds of hydropower stations across North America that can potentially participate in what he calls ‘a new era of digital offtake and co-location’, Webber says it creates new pathways for hydro operators to unlock trapped value and reimagine the future of their assets.
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