Tech giant Google has signed a landmark $3 billion deal with Brookfield Asset Management to secure up to 3 gigawatts of hydropower in the United States - the largest corporate clean energy agreement for hydroelectricity in history.

The agreement, revealed on Tuesday, includes initial 20-year power purchase agreements for electricity from two Brookfield-owned hydroelectric plants in Pennsylvania. The deal is part of Google’s broader strategy to meet soaring energy demands from its expanding fleet of AI and cloud data centers with clean and sustainable power sources.

In addition to the energy deal, Google reportedly plans to invest $25 billion in data centers across Pennsylvania and nearby states over the next two years, according to a report by Semafor.

“This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate,” said Amanda Peterson Corio, Google's head of data center energy.

The PJM Interconnection is the largest electric grid operator in the U.S., serving 65 million people across the Mid-Atlantic and Midwest. Google is also working with PJM to incorporate AI into grid operations to speed up the integration of new energy sources.

The tech industry’s appetite for electricity, particularly clean power, has grown sharply as AI, machine learning, and cloud infrastructure drive demand. U.S. power consumption is now rising after nearly two decades of flat growth.

Google’s parent company, Alphabet, has made significant moves in clean energy over the past year, including first-of-its-kind deals for geothermal and advanced nuclear power. The new hydropower agreement underscores the company's strategy to diversify its zero-carbon energy sources while future-proofing its infrastructure.

As part of the deal, Brookfield will upgrade and relicense its two Pennsylvania hydro sites, with plans to expand the partnership to additional Mid-Atlantic and Midwest locations in the future.

The announcement comes ahead of a major AI and energy summit in Pittsburgh, where Alphabet President Ruth Porat is expected to speak. U.S. President Donald Trump is also scheduled to attend, with over $70 billion in AI and energy investments expected to be unveiled.