Friday, July 18, 2025

Google to Invest $25B in US Power Grid for AI data centres

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Google has committed to a $25 billion investment in AI data centres and related infrastructure across the PJM Interconnection, the largest electricity grid in the United States. The strategic move comes as power demand is on a surge due to high usage of AI services. The investment will happen over two years.

This investment initiative targets the PJM region, which spans 13 states across the Mid-Atlantic, Midwest, and South, including northern Virginia—recognised as the world’s most concentrated AI data centre hub.

The announcement was made by Ruth Porat, President and Chief Investment Officer of Alphabet and Google, during the Pennsylvania Energy & Innovation Summit held in Pittsburgh. Porat was joined by President Donald Trump and Senator Dave McCormick for the formal presentation.

“On behalf of Google, I am pleased to be here in Pittsburgh to announce that Google is investing more than $25 billion across states in this critical PJM region over the next two years,” Porat stated.

The investment comes as there is an urgent need for expanded electricity capacity as PJM Interconnection grapples with rising demand from industrial users and AI data centres.

Complementing its data infrastructure expansion, Google is allocating $3 billion toward the modernisation of two hydropower facilities in Lancaster County, Pennsylvania. This long-term, 20-year agreement with Brookfield Asset Management will reinforce the region’s clean energy capabilities.

Marking a milestone in clean energy procurement, the arrangement grants Google access to as much as 3,000 megawatts of carbon-free hydroelectric power nationwide. It also represents the largest corporate hydroelectric purchase agreement in the world.

“At Google, we’re dedicated to responsibly growing the digital infrastructure that powers daily life for people, communities and businesses,” said Amanda Peterson Corio, Head of Data Centre Energy at Google. “This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate.”

Additionally, Google is launching a workforce development initiative—AI Works for America—designed to equip students and workers in Pennsylvania with practical AI training. As part of this effort, the company has pledged to deliver free AI education to all small businesses in the state.

These developments were announced during a summit that saw more than $90 billion in combined commitments from leading firms toward data, energy, and AI-related investment. Google’s contribution underscores the pivotal role that scalable, sustainable infrastructure plays in the future of AI data centres and digital transformation.

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