Google partnered with Nevada-based utility NV Energy to develop a geothermal energy supply for its data centers. The agreement, which has already been sent to state regulators for approval, would increase geothermal electricity injected into the power grid for Google operations from 3.5 megawatts (MW) to 115 MW in about six years.
The partnership is part of Google’s plan to boost all its operations with low-carbon electricity by 2030. The agreement also produces the so-called “clean transition tariff,” which the company described as “a long-term energy agreement that can facilitate investments in new projects that provide firm, clean capacity to the grid.”
“It allows customers to meet their growing demand for electricity with CFE (carbon-free energy) 24/7 through their existing utility relationship and share the long-term benefits these projects providesuch as increasing the proportion of clean and reliable energy,” they explained.
The agreement occurs when the world’s largest technology companies need more electricity to power their data centers, or computer warehouses needed to sustain technologies such as generative artificial intelligence and cloud computing.
This generated forecasts of a slowdown of the energy transition due to the high energy consumption rates of these facilities. However, partnerships for the development of low-carbon energy are growing. Google’s global operations run on 64% carbon-free energy, including wind and solar, according to the company’s latest environmental report.
Geothermal energy is a source of renewable energy without interruption, but right now it is expensive in the United States. Partnerships like the one signed between Google and NV Energy could advance this type of electricity generation to make it more economically viable for larger applications.
So far this year, Google announced plans to spend at least $4 billion to build or expand data centers in Indiana, Missouri and Virginia. The company plans that its clean transition tariff system will expand in the country. Some of its peers, such as Microsoft and Amazon, are also participating through agreements with energy utilities.
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