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.