Google has announced it would be investing $25 billion to build data centers and AI infrastructure over the next two years in states across PJM Interconnection, the biggest electric grid in the U.S.
The company also mentioned it would spend $3 billion to modernize two hydropower plants in Pennsylvania to help meet the growing power demand from data centers and AI in the region. This refurbishment of plants is part of a broader framework agreement signed by Google with Brookfield Asset Management to purchase 3,000 megawatts of hydroelectric power across the U.S.
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PJM covers 13 states across the mid-Atlantic and parts of the Midwest and South. It includes the world’s largest data center market in Northern Virginia. Google’s investment comes at a time when the grid is struggling to keep up with rising electricity demand from data centers and industry.
Google stated that Tapestry, an Alphabet incubated “moonshot,” will also be included in the deal. Tapestry, which is powered by Google Cloud and Google DeepMind, will intelligently manage and optimize interconnecting power generation to the PJM electric grid. The tech giant claims that AI can play a “pivotal role” in improving and expanding the U.S. electricity system while maintaining reliability and security.
“This is the first time artificial intelligence is being used to manage the entire energy interconnection queue and process, as opposed to point solutions,” said Page Crahan, general manager of Tapestry, during the April 9 press roundtable. “We are bringing more energy capacity on the grid faster. We’re driving efficiency and affordability by enabling more projects to send power to the grid and meet the region’s energy needs as efficiently as possible. And we are integrating more diverse energy resources—solar, wind and storage project capacity currently makes up over 90% of the PJM interconnection queue—and our Tapestry’s AI powered tools can support the rapid and reliable integration of these sources into the grid.”
She also added that investing in energy infrastructure “unlocks significant growth in prosperity and economic activity.”
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President Donald Trump, White House Cabinet officials, tech and energy executives are meeting at Carnegie Mellon University in Pittsburgh on Tuesday to discuss AI investment in Pennsylvania.
Google had recently also announced plans to invest in nuclear fusion. It is doing so via a partnership with Commonwealth Fusion Systems (CFS), a private company spun from Massachusetts Institute of Technology (MIT). The tech giant would buy 200 megawatts of clean fusion power from what CFS describes as the world’s first grid-scale fusion power plant, known as ARC, based in Chesterfield County, Virginia. ARC is expected to generate 400 megawatts of clean, zero-carbon power in the early 2030s, which is enough energy to power large industrial sites or roughly 150,000 homes, according to CFS.