Saad Ullah
Google just made a bold bet on the future of AI energy. The company signed its first U.S. deal for carbon-capture natural gas to power its Midwest data centers, marking a shift in how tech giants secure electricity. As AI workloads push power demand to record levels, Google isn't waiting for the traditional grid to adapt—it's creating its own solution.
The Deal Behind the Headlines
Market analyst Shay Boloor recently noted that Google signed this carbon-capture deal to support round-the-clock clean energy as AI demand surges. According to Reuters, the agreement involves a 400-megawatt natural gas plant in Decatur, Illinois, developed by Low Carbon Infrastructure at an Archer Daniels Midland industrial site. The facility will use carbon-capture and storage technology to trap up to 90% of CO₂ emissions, making it one of the first large-scale CCS projects directly tied to a tech company's operations.
AI is driving unprecedented energy demands. Google's data centers already consume gigawatts globally, and each new generation of AI models—from Gemini to DeepMind's advanced systems—requires exponentially more computing power and electricity. The Midwest grid is nearing capacity with long delays for connecting new renewable sources. AI servers need to run 24/7, which makes intermittent renewables like wind and solar insufficient without backup power. And Google has committed to running entirely on carbon-free energy by 2030, so partnering with a CCS-enabled plant helps balance reliability with emissions goals.
This isn't Google's only major energy move this year. Earlier in 2025, the company signed a $3 billion hydropower deal in North America—one of the largest clean-energy contracts ever made by a tech firm.
The Carbon Capture Debate
Carbon capture remains controversial. Critics say it's expensive and unproven at scale, while supporters see it as essential for sectors that can't yet rely entirely on renewables around the clock. By combining natural gas with carbon-capture technology, Google is acknowledging a practical reality: the clean-energy transition must also be reliable. Energy analyst Jenna Morgan puts it bluntly: "Big Tech's demand curve for AI is growing faster than solar or wind can be deployed. This is a pragmatic solution, not a retreat from sustainability."
Why Illinois Makes Sense
Illinois offers strategic advantages. The state already has infrastructure for subsurface carbon storage operated by ADM in Decatur, where captured CO₂ gets injected deep underground. The region also sits within two key grid networks—PJM and MISO—both critical for routing power to Google's expanding Midwest data center footprint.
Google's deal reflects a broader trend toward what's being called "energy sovereignty" in Big Tech. Instead of being passive consumers, companies like Microsoft and Amazon are becoming co-developers of power infrastructure, exploring small modular reactors, geothermal sources, and direct-grid agreements. The shift is driven by one thing: AI's relentless appetite for electricity.
This could fundamentally change how corporations interact with the traditional energy sector. Tech giants are no longer willing to compete for limited grid capacity—they're building their own.
Saad Ullah
