American Electric Power (AEP) has announced plans to invest approximately $4 billion in a large-scale fuel cell project near Cheyenne, Wyoming, to supply electricity to Google's expanding operations under a 20-year power purchase agreement.
The proposed facility will have a generation capacity of 702 megawatts, providing a dedicated source of electricity to support Google's growing energy requirements as the technology company expands its data center infrastructure.
The project will be developed by Cheyenne Fuel Cell, a company approximately 92% owned by AEP, with the remaining interest held by funds advised by Basalt Infrastructure Partners.
Construction is expected to begin in 2026, with the facility scheduled to become fully operational by the end of 2028.
The development will use fuel cell technology supplied by Bloom Energy, which provides on-demand electricity generation designed to support operations requiring consistent power availability.
The investment comes as major technology companies accelerate spending on data centers and artificial intelligence infrastructure, creating significant additional demand for electricity across the United States.
Existing power networks are facing growing pressure from these requirements, while lengthy construction timelines for transmission and generation facilities have encouraged companies to explore alternative electricity supply arrangements.
Earlier this year, AEP also agreed to acquire additional Bloom Energy fuel cell capacity under an agreement valued at approximately $2.65 billion.
Google has separately reached an agreement with Black Hills Corporation to support another proposed data center project in the Cheyenne area, highlighting the region's growing importance as a location for energy-intensive technology infrastructure.
AEP shares rose more than 3% in premarket trading following the announcement, reflecting investor interest in the company's expanding role in supplying electricity to the technology sector.
The planned investment demonstrates how the rapid expansion of data centers is creating new opportunities for utilities, energy technology providers and infrastructure investors.
