Clearway Energy, Inc. (CWEN) shares jumped Thursday after the company announced it's teaming up with Alphabet Inc.'s (GOOGL) Google (GOOG) on three substantial power purchase agreements inked in 2025. The deals will bring 1.17 gigawatts of carbon-free energy projects online, representing more than $2.4 billion in energy infrastructure investment.
How the Deal Works
The agreements cover carbon-free energy projects spread across Missouri, Texas, and West Virginia. Under the terms, Clearway will supply clean power to regional grids that support Google's data centers in SPP, ERCOT, and PJM markets for up to 20 years.
Construction on over 1 gigawatt of capacity kicks off this year, with the first projects expected to start generating power in 2027 and 2028. These new agreements expand an existing partnership between the two companies, pushing Clearway's total contracted capacity with Google to 1.24 gigawatts.
Fueling Growth With Debt
Earlier this month, a Clearway Energy subsidiary priced a $600 million offering of 5.750% senior notes due 2034 at par. That's an upsize from the originally planned $500 million offering, suggesting strong investor appetite for the company's debt as it scales up operations.