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Google and AES Sign Agreements for Co-Located Generation and Data Center in Texas

LCG, February 24, 2026--The AES Corporation (AES) and Google today announced agreements for clean power generation that will be co-located with a new Google data center in Wilbarger County, Texas. The agreements include a 20-year Power Purchase Agreements (PPA) for co-located power generation. These coordinated energy projects and powered land will enable Google to rapidly expand its operations to meet demand for core services, while AES will expand its power generation portfolio.

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Amazon Announces Plans to Invest $12 Billion in Data Center Campuses in Louisiana

LCG, February 23, 2026--Amazon today announced plans to invest $12 billion to develop and construct state-of-the-art data center campuses in northwest Louisiana that will support cloud computing technologies. Amazon is partnering with STACK Infrastructure, the developer and owner of the campuses, to lead the construction and development of the data center facilities. Amazon has already invested in solar energy projects in Louisiana, bringing up to 200 MW of new carbon-free energy onto the grid.

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Industry News

Purchasers of California Power Plants Profit Plenty

LCG, Dec. 18, 2000--When California's utilities were pressed to sell off their power plants there was no shortage of buyers and the companies were able to dispose of their generating assets at prices that in some cases were twice book value, or more.

The investment has turned out well for the six out-of-state energy companies has turned out well, judging by their third quarter earnings reports.

In the three months ended September 30, Reliant Energy Inc. of Houston reported a gain in net income of 37 percent. The company, which purchased five natural gas-fueled power plants from Southern California Edison Co., said about a third of its profits was produced by those plants. "It has proved a good acquisition for us," said Reliant's Richard Wheatley.

Dynegy Inc., also of Houston, participated in the purchase of four Southern California plants which now account for about a sixth of its generation in the U.S. in terms of megawatts but a lot more in terms of profit. Lynn Lednicky, a Dynegy senior vice president, pointed out there was a lot of risk in buying the plants.

"With a brand new market, there is a great deal of uncertainty," he said. "Some companieslike to be the first one in the door. There were clear indications there was going to be a great deal ofliquidity there."

As the simple economic equation of supply and demand has caught up with California, the out-of-state purchasers of the power plants are being seen as the root of the problem by politicians needing a scapegoat, and that bothers Lednicky.

"We are being vilified as the ones who are causing all of the problems in California," he said. "Rather than trying to deal with the volume of electricity in California, people are trying to attack the price end of the equation."

Tom Williams, director of public affairs for the western operations of Duke Energy Inc., said "We saw there was going to be a substantial need for power in California." Duke enjoyed a 74 percent increase in third quarter net income, much of the improvement due to performance of its California investment. "We have been very pleased with our returns," Williams said.

California politicians have been vocal in condemning the new power plant owners for "price gouging," but they are either ignorant of the law of supply and demand or are deliberately misleading their constituents in an effort to escape blame for high power prices in the state.

When every power plant in the state is running at full capacity, and when every river is flowing at its full springtime rate, there is available in the state a total of 44,300 megawatts of generation. In the autumn, when the rivers are just a trickle, that falls to about 32,000 megawatts.

Because of a robust high-tech economy that consumes huge amounts of electricity, the state needs more than 44,300 megawatts of power on a hot summer day. As has been seen in recent weeks, more than 33,000 megawatts are needed on a mild autumn day. There are simply not enough power plants in California.

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