Google Partners With NV Energy For Geothermal Electricity Supply To Data Center In Nevada

Google has signed an agreement with Berkshire Hathaway's electrical utility, NV Energy, (photo: x @NVEnergy)

JAKARTA - Google has signed a deal with the Berkshire Hathaway electricity utility, NV Energy, to supply their data center in Nevada with advanced geothermal electricity. This was said by the US technology company on Wednesday, June 12. This agreement, which has been submitted to state utility regulators to approve, will increase the amount of carbon-free geothermal electricity injected into the local power grid for Google operations to 115 megawatts from 3.5 megawatts in about six years.

This deal comes as the world's largest tech companies seek huge amounts of electricity to support their fast-growing data centers, or giant computer warehouses, needed to support technologies such as generative artificial intelligence and cloud computing. This partnership advances Google towards its target to fully operate with 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 current global operations are supported by 64% of carbon-free energy, including wind and solar, according to the company's latest environmental reports.

Partnerships with NV Energy are a new way for companies with enormous electricity needs and climate goals to gain their power in regulated electricity markets. Regulated electricity markets require power to be purchased from local utilities, compared directly from power plants, which can make it difficult for companies seeking full clean energy.

The deal involves Google's direct input in the planning of NV Energy's power generation resources and developing a tariff structure, called Clean Transition Tariff, which wants Google to replicate across the country. Duke Energy, which operates in the state set, announced similar deals with Google, as well as Microsoft and Amazon, late last month.

To facilitate this deal, NV Energy signed an electricity purchase agreement with advanced geothermal developer Fervo Energy, which currently supplies Google with 3.5 megawatts of power after entering a pilot program with the technology company in 2021.

Resources from solar and wind energy depend on the availability of sunlight and wind, which has led companies to seek stable clean capacity considering existing technologies such as nuclear or less used technologies such as geothermals.

Geothermal, which uses natural underground heat to generate renewable electricity, accounts for about 10% of the total power generation in Nevada, or the largest in any US state, according to the Energy Information Administration.