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Google partners with Nevada utility for geothermal to power data centers
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Google partners with Nevada utility for geothermal to power data centers
Jun 12, 2024 8:09 PM

NEW YORK, June 11 (Reuters) - Google has

entered into an agreement with Berkshire Hathaway ( BRK/A ) electric

utility NV Energy to power its Nevada data centers with advanced

geothermal electricity, the U.S. technology company said on

Wednesday.

The deal, which has been sent to state utility regulators

for approval, would increase the amount of carbon-free

geothermal electricity injected into the local power grid for

Google's operations to 115 megawatts from 3.5 megawatts in about

six years, Google said in a statement.

The agreement comes as the world's biggest technology

companies hunt for massive amounts of electricity to power their

rapidly-expanding data centers, or giant computer warehouses,

needed to support technologies like generative artificial

intelligence and cloud computing.

The partnership advances Google towards its goal of running

on entirely clean energy by 2030.

So far this year, Google has announced plans to spend at

least $4 billion to build or expand data centers in Indiana,

Missouri and Virginia.

Google's global operations were powered by 64% carbon-free

energy, including wind and solar, according to the company's

latest environmental report.

The partnership with NV Energy is a new way that companies

with very large emerging electricity loads and climate goals may

get their power in regulated power markets.

Regulated power markets require power to be purchased from

the local utility, as opposed to directly from a power

generator, which can make it challenging for companies seeking

all-clean energy.

The agreement involved Google's direct input in NV Energy's

power generation resource planning and developing a rate

structure, which has been dubbed the Clean Transition Tariff,

that Google wants to be replicated elsewhere in the country.

Duke Energy ( DUK ), which operates in regulated states, announced a

similar agreement with Google, as well as Microsoft ( MSFT ) and Amazon ( AMZN ),

late last month.

To facilitate the deal, NV Energy executed a power purchase

agreement with advanced geothermal developer Fervo Energy, which

is currently supplying Google with 3.5 megawatts of power after

entering into a pilot program with the technology company in

2021.

Power sources from solar and wind energies depend on the

availability sunshine and wind, which has led to companies

searching for firm clean capacity to consider existing nuclear

or lesser used technologies like geothermal.

Geothermal, which uses naturally occurring underground heat

to produce renewable electricity, accounts for about 10% of the

total electricity generation in Nevada, or the most of any U.S.

state, according to the Energy Information Administration.

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