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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

California Hopes to Renegotiate Power ContractsAs Large Users Sign Their Own Supply Deals

LCG, Oct. 22, 2001--Energy advisors to California Gov. Gray Davis said on Friday that the state intended to press ahead in its attempts to renegotiate some of the power purchase agreements entered into by the state Department of Water Resources.

The water agency signed more than 50 contracts with independent power producers for some $43 billion worth of electricity to be delivered mostly over the next ten years, but with one contract extending 20 years into the future.

The cost of power under those contracts averages about $69 per megawatt-hour, more than twice the current market rate.

State records show that many large power customers aren't waiting around to see what the state will pay for power and are arranging their own deals with power suppliers. That move could leave householders and small commercial customers on the hook for the high-priced power.

"This stampede could shift over $8 billion in costs to these consumers in coming years," said state Treasurer Phil Angelides, who added "It isn't fair and it isn't right."

State officials say that not all of the power contracts will be renegotiated, but decline to say which.

"Certainly we're not targeting every contract," said Barry Goode, Davis' legal affairs secretary. "Long-term contracts have been extremely valuable in keeping the market stable."

Separately, the California Department of Water Resources, which also makes spot market power purchases to serve the day-to-day needs of the state's cash-strapped investor-owned utilities, said it expects its total electricity costs for the three utilities to be $17.2 billion by December of next year, a sharp drop from its earlier estimate of $21.4 billion.

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