OGE Energy signs power contract for three Google data centers
OGE Energy Corp. (NYSE: OGE) announced a contract to supply electricity to three Google data centers in Muskogee and Stillwater, Oklahoma. The agreement requires Google to pay all costs for connecting the facilities to the electric grid and covers contracted costs regardless of actual energy usage.
Under the terms, Google will pay 100% of infrastructure connection costs and its share of power generation required for the data centers. The company will also make power generation capacity available from two solar facilities currently under construction.
"This unique agreement is a model for future data center partnerships and forms the basis for a new large-load tariff that OG&E will submit in the coming weeks," said Sean Trauschke, Chairman, President and CEO of OGE Energy Corp.
The Electric Service Agreements and Capacity Purchase Agreements require approval from the Oklahoma Corporation Commission before implementation. OG&E plans to file these agreements for regulatory review in the coming days.
OG&E serves approximately 915,000 customers in Oklahoma and western Arkansas. The utility generates 6.9 megawatts of electricity from nine power plants and delivers more than 34.4 million megawatt-hours annually through its distribution network.
Google announced plans for the Oklahoma data centers last year as part of its infrastructure expansion. The facilities will support various online services including banking systems, hospital records, and emergency services.
Oklahoma residential electricity rates are currently 19% below the regional average and 34% below the national average, according to the company's press release statement.
