NextEra Energy and Google Cloud announced a strategic partnership on Monday to jointly develop gigawatt-scale data center campuses across the United States, a move designed to address the surging power demands of artificial intelligence (AI).

The collaboration pairs the largest renewable energy developer in the U.S. with one of the world’s largest cloud providers. Under the agreement, the companies will focus on the rapid development of land, power interconnection, and generation capacity required to support new data center infrastructure. According to the announcement, the companies are currently developing three initial campuses and are evaluating additional locations for future expansion.

This development highlights a broader trend in the utility and technology sectors, where hyperscalers are increasingly seeking direct partnerships with power producers to secure reliable electricity for energy-intensive AI model training and operations. Grid reliability and capacity have become central concerns for the tech industry as data center consumption is projected to grow significantly over the coming decade.

In addition to physical infrastructure, the partnership includes a technological component aimed at modernizing grid operations. NextEra Energy will utilize Google Cloud’s AI and infrastructure software to optimize its internal operations. This includes the use of Google’s “TimesFM 2.5” forecasting model and “WeatherNext 2” to better predict grid conditions and manage field crews.

“Our partnership with Google exemplifies this very singular moment when energy and technology are becoming inextricably intertwined,” said John Ketchum, chairman and CEO of NextEra Energy. “Together, we intend to build data center capacity and energy infrastructure at scale, advance cutting-edge technology and reimagine how energy companies operate.”

The companies plan to release their first commercial AI-enhanced product for grid management in the Google Cloud Marketplace by mid-2026. The software aims to help utilities predict equipment failure and navigate supply chain or weather-related disruptions.

“Working with NextEra Energy to power our infrastructure growth further strengthens our long-standing collaboration and will help us meet increasing demand from our customers as they deploy AI technologies at scale,” said Thomas Kurian, CEO of Google Cloud.

The announcement builds on an existing relationship between the two entities, which currently involves approximately 3.5 gigawatts of contracted or operational capacity. Recently, the companies announced plans to restart the Duane Arnold Energy Center, a nuclear plant in Iowa, and signed power purchase agreements adding 600 megawatts of clean energy to the Oklahoma grid.