Google Drops $25B on AI Infrastructure. Right Into the Heart of America’s Power Grid

AI’s appetite for energy just got a megawatt-sized boost.

Google announced it will invest $25 billion over the next two years in data centers and AI infrastructure across the PJM Interconnection, the largest electric grid in the U.S., spanning 13 states from the Midwest to the Mid-Atlantic.

But that’s not all:

• 🔌 Google also plans to modernize two hydropower plants in Pennsylvania with a $3B upgrade.

• 🌊 This is part of a framework deal with Brookfield Asset Management to purchase 3,000 megawatts of hydroelectric power across the U.S.

• 🏗️ It all comes as the PJM grid strains to keep up with demand from AI, data centers, and industrial growth, especially in northern Virginia, the world’s largest data center hub.

💡 The timing?
Coinciding with a major AI and energy summit held at Carnegie Mellon in Pittsburgh, featuring Alphabet’s Ruth Porat, White House officials, and over $90 billion in data center, energy, and AI-related investments announced at the event.

📈 Why it matters:
The surge in AI infrastructure spending is putting a grid-sized spotlight on the energy sector. Mentions of “AI” and “energy” on corporate earnings calls exploded over the last two years, and even after a slight dip, 277 mentions in Q2 2025 show that power is still the priority.

Source: CBInsights