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Major utilities across the United States have reported an unprecedented rise in long-term power supply agreements with data centre operators, driven by surging demand from artificial intelligence, cloud computing and hyperscale expansion. Industry assessments earlier this year suggested that data centres could account for nearly 8% of US power generation by 2030, up sharply from 3% in 2022. Over the past two years, utilities have signed multi-gigawatt clean-energy contracts, revived nuclear capacity, secured major hyperscaler deals and committed significant infrastructure investment to support large-scale campuses led by Google, Meta, Microsoft, Amazon and other developers.
US utilities are accelerating large-scale power supply arrangements with data centre developers, responding to a demand surge fuelled by artificial intelligence and cloud infrastructure. Analysts highlighted earlier this year that data centres could require nearly 8% of the nation’s electricity by 2030, a major increase from 2022 levels, prompting utilities to pursue long-term capacity commitments. Advertisement
NextEra Energy expanded its partnership with Google Cloud to increase data centre power availability by several gigawatts and strengthen energy infrastructure nationwide. The utility also finalised 11 power purchase agreements and two energy-storage contracts with Meta, amounting to more than 2.5 GW of clean-energy capacity scheduled to go live between 2026 and 2028.
In early 2025, PPL’s Kentucky subsidiary—Louisville Gas and Electric Company—entered into a power supply agreement with developers PowerHouse Data Centers and Poe Companies. The arrangement supports a 400 MW data centre campus in Louisville, with the first 130 MW expected to be operational in late 2026.
Constellation Energy finalised an exclusive agreement with Microsoft to restart one unit of the Three Mile Island nuclear plant in Pennsylvania, enabling the supply of 835 MW for the tech major’s data centres. This marks the first instance of a US nuclear facility being restarted after shutdown. Constellation also reached an understanding with Meta to ensure one of its Illinois reactors remains operational for two decades.
Ameren signed a supply deal for a 250 MW data centre and secured further commitments totalling more than 85 MW for smaller facilities across Missouri and Illinois. Alliant Energy confirmed multiple data centre power agreements, though it did not reveal detailed commercial terms.
Exelon stated that it is progressing engineering work for over 5 GW of future data centre load. Several customers have already placed deposits enabling its ComEd unit to begin procurement of transmission equipment.
American Electric Power reported letters of intent covering 15 GW of future data centre demand expected to materialise before the end of the decade. Xcel Energy will supply power to Meta’s Minnesota data centre, while Entergy received legislative approval to invest in transmission and generation projects dedicated to an upcoming Amazon Web Services facility in Mississippi. Entergy has also signed an agreement to power Meta’s hyperscale campus in Louisiana, which is expected to become the company's largest globally.
Pinnacle West Capital disclosed that it has commitments exceeding 4,000 MW from data centre clients, excluding a backlog of requests surpassing 10,000 MW. AES reported agreements with Google for 310 MW in Ohio and extended its earlier partnership with a 15-year, 727 MW deal in Texas. It also finalised solar-based PPAs totalling 650 MW for Meta’s data centres in Texas and Kansas. By the past month, AES had accumulated an 11.1 GW contract backlog, including 4 GW dedicated to hyperscalers, most of which are slated to become operational within three years.
Talen Energy confirmed a supply arrangement with Amazon Web Services linked to its 960 MW data centre campus in Pennsylvania. NorthWestern Energy added that it has signed a letter of intent with a data centre developer in Montana, involving a minimum 50 MW load beginning in 2027 and increasing to 250 MW or more by 2029.
Source - Reuters
5th Jun, 2025
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