# Data Center Operators Turn to Hydropower Deals as Clean Energy Demand Surges

_Wednesday, April 29, 2026 at 4:28 AM EDT · Infrastructure, Tech & Business · Latest · Tier 2 — Notable_

![Data Center Operators Turn to Hydropower Deals as Clean Energy Demand Surges — Primary](https://media.datacenterdynamics.com/media/images/Brookfield_Renewable_US.2e16d0ba.fill-1200x630.jpg)

Data center companies are pursuing new hydropower procurement agreements as they seek reliable, zero-emission electricity to match growing capacity needs. In 2025, Google and Digital Realty each signed major offtake deals that reflect two very different approaches to securing hydroelectric power.

Google's agreement with Brookfield Renewables US, signed in July of last year, is a first-of-its-kind Hydro Framework Agreement that committed Brookfield to deliver up to 3 gigawatts of hydro power across the United States directly to the hyperscaler. The initial contracts cover the 670-megawatt Holtwood and Safe Harbor facilities in Pennsylvania, delivered via a virtual power purchase agreement with Google purchasing environmental attribute credits tied to the project.

Brookfield CEO Stephen Gallagher told DCD that many of the company's hydro assets had been tied up in utility supply agreements for decades, but as those contracts expired the capacity became available for the first time in 20 to 30 years. Brookfield operates roughly 6 gigawatts of hydro assets across the US and Canada and is the largest private owner of hydro licenses in the United States.

Gallagher said the real attraction of large hydro assets, beyond 24/7 baseload power and low-cost zero-emission electricity, is their potential to complement Google's existing wind and solar portfolio. Google has committed to match electricity consumption at all times, and adding baseload hydropower could help meet that goal in specific geographies. Brookfield's long-term virtual power purchase agreements run 15 to 25 years, providing the cash flow certainty needed to fund maintenance and relicensing.

Digital Realty took a different path, signing a deal with Current Hydro LLC for 500 gigawatt-hours from three retrofit projects on the Ohio River. Current Hydro focuses on adding power generation to existing lock-and-dam infrastructure operated by the US Army Corps of Engineers rather than building new dams. Its CEO, Jeremy King, said the company evaluated many renewable sources but concluded that clean, firm power was what the grid needed most, and that retrofitting non-powered dams offered one of the fastest, lowest-risk ways to bring new generation online.

Digital Realty VP of sustainability Aaron Binkley said hydropower had not historically been the most competitive on price, but has become more attractive as wind and solar prices have risen, especially given its firm baseload characteristics. Current Hydro expects the first projects to come online by 2029, with a 24-to-36-month construction timeline. The company has 20 to 25 projects in its development pipeline and sees a pathway to 250 to 500 megawatts over the next eight to ten years.

Large-scale hydropower development in the US faces constraints. Approximately 80 percent of economically feasible traditional hydropower potential has already been developed, and the existing fleet averages 60 years in age. Environmental concerns, permitting hurdles, and public opposition mean new large dams are effectively off the table. Of roughly 90,000 dams operating in the US, fewer than three percent are powered, but the Department of Energy estimates up to 12 gigawatts of additional capacity could be tapped through retrofits.

## Sources

- [Data Center Dynamics](https://www.datacenterdynamics.com/en/analysis/data-center-hydro-power/)

---
Canonical: https://techandbusiness.org/newswire/nboQQLUk2FOYJmEHidI38Q
Retrieved: 2026-04-29T11:39:05.791Z
Publisher: Tech & Business (techandbusiness.org)