Google and a major U.S. utility company agreed to develop data centers with power plants located on site, addressing one of the most pressing issues in the proliferation of the digital hubs.
NextEra Energy and Google plan to develop "multiple, new gigawatt-scale data center campuses with accompanying generation and capacity," according to a statement Monday from the companies. "Gigawatt-scale" refers to data centers with the largest amount of computing capacity. The two companies did not disclose the locations of the proposed data centers or the financial terms of the agreement.
Google is joining other large technology companies in racing to develop data centers to fuel the surging demand for computer servers to power digital uses including e-commerce and streaming services. Artificial intelligence has exacerbated the issue, as AI applications require vastly more power than standard processes handled by data centers.
Representatives from the tech and utility sectors, as well as academics, have said that there isn't enough electric power available to support projected growth in data center demand.
It's also difficult to obtain financing and land to build new facilities. That has led to arrangements similar to Google's partnership with NextEra, where the technology company shares costs with the utility or real estate investment trust spearheading the development.
"Energy and technology are becoming inextricably intertwined," NextEra Energy CEO John Ketchum said in the statement.
Previous partnerships
Google and NextEra have partnered on other projects, including one to restart the Duane Arnold nuclear plant near Cedar Rapids, Iowa.
Meanwhile, Google is plowing ahead with its strategy to invest tens of billions of dollars in new data centers.
Last month, the company said it planned to spend $40 billion to develop three data centers in Texas and invest in the state's power grid, water resources and training programs.
NextEra, based in Juno Beach, Florida, and the parent company of Florida Power & Light, is one of the largest producers of electric power from renewable sources among U.S. utilities.
Also on Monday, NextEra announced an agreement to acquire Symmetry Energy Solutions to enhance its position in providing natural gas supply, storage and asset management services for undisclosed terms.
Natural gas is the largest source of electric power for data centers, according to the International Energy Agency.