AES Announces Landmark Agreements with Google in Texas

Rhea-AI Summary

AES (NYSE: AES) announced 20-year Power Purchase Agreements with Google to provide co-located generation and powered land for a new Google data center in Wilbarger County, Texas. AES will own and operate the generation assets, secure land and interconnection, and build shared electricity infrastructure to support the campus.

The deal expands a long-standing partnership and supports local jobs, rural landowners, and grid reliability while minimizing local grid impact and operational water use.

Positive

• 20-year PPAs signed for co-located power generation
• AES will own and operate generation assets and shared infrastructure
• Land and interconnection secured to accelerate data center buildout
• Expands AES relationship with hyperscalers: nearly 12 GW signed to date

Negative

• None.

Key Figures

PPA term length: 20 years Data center energy deals: 12 GW PPAs with hyperscalers: 9 GW +5 more

8 metrics

PPA term length 20 years Power Purchase Agreements for co-located generation with Google in Texas

Data center energy deals 12 GW Agreements signed by AES with data center customers to date

PPAs with hyperscalers 9 GW Portion of AES data center agreements that are PPAs directly with hyperscalers

Quarterly revenue $3,351 million Revenue for quarter ended September 30, 2025 vs $3,289 million prior year

Income from continuing ops $554 million Quarter ended September 30, 2025 vs $222 million prior year

Diluted EPS $0.89 Quarter ended September 30, 2025 vs $0.71 prior year

Impairment charge range $250–$325 million Non-cash impairment for Maritza plant to be recognized as of Dec 31, 2025

Net income attributable $639 million Quarter ended September 30, 2025 vs $504 million prior year

Market Reality Check

Price: $16.26 Vol: Volume 7,824,029 vs 20-da...

normal vol

$16.26 Last Close

Volume Volume 7,824,029 vs 20-day average 9,821,497, indicating lighter-than-typical trading ahead of this announcement. normal

Technical Price $16.26 is trading above the 200-day MA of $13.33 and within 3.1% of the 52-week high.

Peers on Argus

AES was down 1.51% while key peers showed mixed moves: CIG -1.08%, ALE -, but AQ...

AES was down 1.51% while key peers showed mixed moves: CIG -1.08%, ALE -, but AQN +0.75%, AVA +0.64%, BIP +0.52%. With no peers in momentum scanners and no same-day peer news, trading pointed to company-specific dynamics rather than a broad utilities rotation.

Historical Context

5 past events · Latest: Feb 20 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 20	Quarterly dividend	Neutral	-0.1%	Announced common stock dividend of $0.17595 per share with May 15 payment.
Feb 19	Clean energy ranking	Positive	+0.3%	Recognized by BNEF as top seller of clean energy to corporations in 2025.
Jan 27	Earnings call notice	Neutral	+1.8%	Set date and access details for Q4 and full-year 2025 results call.
Jan 7	Lawsuit filed	Negative	-3.0%	Allegations of scheme to monopolize LNG-to-power market in Panama region.
Dec 5	Quarterly dividend	Neutral	-0.4%	Declared $0.17595 per share dividend with Feb 13, 2026 payment date.

Pattern Detected

Recent AES headlines have produced relatively modest single-day moves, with negative legal or impairment items seeing somewhat larger downside than routine dividends or recognition news.

Recent Company History

Over the last few months, AES news has ranged from routine dividends and conference-call notices to recognition as a top clean-energy provider and a notable lawsuit over LNG-to-power markets. Dividend declarations on Dec 5, 2025 and Feb 20, 2026 saw small negative reactions, while the BNEF clean-energy ranking on Feb 19, 2026 and an earnings call announcement on Jan 27, 2026 coincided with mild gains. The LNG-market lawsuit on Jan 7, 2026 drew the sharpest recent decline.

Market Pulse Summary

This announcement highlights AES’ deepening role as a clean-energy supplier to hyperscalers through ...

Analysis

This announcement highlights AES’ deepening role as a clean-energy supplier to hyperscalers through 20-year PPAs co-located with Google’s new Texas data center. It reinforces earlier recognition from BNEF and builds on nearly 12 GW of data center-related agreements, including 9 GW directly with hyperscalers. In parallel, investors may track upcoming financial disclosures, the planned Maritza impairment of $250–$325 million, and capital needs to support continued data center infrastructure growth.

Key Terms

power purchase agreements (ppa), schedule 13g, schedule 13g/a, form 4, +3 more

7 terms

power purchase agreements (ppa) financial

"the two companies entered into 20-year Power Purchase Agreements (PPA) for co-located power"

A power purchase agreement (PPA) is a long-term contract in which a buyer agrees to purchase electricity from a specific generator at agreed prices and quantities over a set period. For investors, PPAs matter because they turn uncertain future energy sales into predictable cash flow—similar to a multi-year subscription—making projects easier to finance, valuing assets more reliably, and reducing exposure to volatile energy prices and demand swings.

schedule 13g regulatory

"filed a Schedule 13G reporting beneficial ownership of 35,331,084 shares"

A Schedule 13G is a formal document that investors file with the government when they acquire a large ownership stake in a company, usually for investment purposes rather than control. It helps keep the public informed about who owns significant parts of a company's shares, which can influence how the company is managed and how investors make decisions. Filing this schedule is important for transparency and understanding the ownership landscape of publicly traded companies.

schedule 13g/a regulatory

"filed an amended Schedule 13G reporting beneficial ownership of 34,959,555 shares"

A Schedule 13G/A is an amended public filing with the U.S. securities regulator that updates a previous Schedule 13G, disclosing when an individual or group holds a substantial (typically over 5%) stake in a company and is claiming a passive, non‑controlling intent. Investors monitor these updates because rising or falling holdings can signal changing confidence, potential future moves, or shifts in voting power — like watching a public ledger where large shareholders quietly adjust their positions.

form 4 regulatory

"AES Corp filed a Form 4 reporting an automatic share withholding"

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

8-k regulatory

"title": "[8-K] AES CORP Reports Material Event""

An 8-K is a public report companies must file with the U.S. Securities and Exchange Commission to disclose major events or changes that shareholders should know about, such as leadership changes, mergers, financial surprises, or legal developments. It matters to investors because it acts like a breaking-news alert for a company’s health and prospects—providing timely facts that can affect stock value and investment decisions.

10-q regulatory

"title": "[10-Q] AES CORP Quarterly Earnings Report""

A 10-Q is a company’s required quarterly filing with U.S. regulators that provides updated financial statements, management discussion of results, and disclosures about risks, legal matters and operational changes. Think of it as a quarterly report card and progress update that lets investors track recent performance, spot trends or warning signs between annual reports, and make informed buy/sell decisions based on the latest verified financial and business information.

non-recourse debt financial

"non-recourse debt of $24,603 million and recourse debt of $6,246 million"

A non-recourse debt is a loan where the lender can seize only the specific asset pledged as security (for example, a building or equipment) if the borrower defaults, and cannot pursue the borrower’s other assets or income. Investors care because this limits how much downside the borrower’s other holdings absorb and changes who bears loss in trouble: lenders face higher recovery risk while equity holders can be wiped out more easily, affecting valuation and risk assessment.

AI-generated analysis. Not financial advice.

Google and AES Sign 20-year PPAs for Co-Located Generation

ARLINGTON, Va., Feb. 24, 2026 /PRNewswire/ -- The AES Corporation (NYSE: AES) today announced agreements for energy generation that will be co-located with a new Google data center in Wilbarger County, Texas. These energy projects and powered land will enable Google to quickly expand its operations to meet demand for core services that people and businesses use every day, as AES continues to deliver cost-effective and innovative solutions to support this growth. With today's announcement, AES and Google are expanding their long-standing partnership to meet Google's energy, reliability, and affordability goals.

Capitalizing on its extensive development expertise, AES secured the land and interconnection agreements and will build the necessary shared electricity infrastructure for the co-located facility. In addition, the two companies entered into 20-year Power Purchase Agreements (PPA) for co-located power generation. AES will own and operate the generation assets in addition to providing retail, cost optimization and related services to Google's Wilbarger County data center campus under a long-term energy management agreement.

"Our expanded partnership with Google demonstrates how AES can accelerate data center development by delivering powered land and energy at scale," said Andrés Gluski, AES President and CEO. "AES is recognized as a world leader in providing energy solutions to technology companies. To-date, AES has signed agreements for nearly 12 GW of energy with data center customers, 9 GW of these are PPAs directly with hyperscalers."

"Google's data centers are long-term investments in the communities we call home, and our new site in Wilbarger County will be no exception," said Amanda Peterson Corio, Google Global Head of Data Center Energy. "In partnership with AES, we are bringing new clean generation online directly alongside the data center to minimize local grid impact and protect energy affordability. We are also pairing this new power with advanced air-cooling to eliminate operational water use, ensuring Texas remains both sustainable and resource abundant."

AES is the leading clean energy provider for US corporations, according to BloombergNEF's (BNEF) Corporate Energy Market Outlook, which ranked AES as a top provider to corporate customers over the last five years.

AES has a track record of deploying large infrastructure projects that benefit communities, while meeting the needs of its customers and enhancing grid reliability, affordability, and sustainability. The facilities announced today will support rural landowners, expand job opportunities, and contribute to local economies in the surrounding region.

About AES

The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2024 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.

Any Stockholder who desires a copy of the Company's 2024 Annual Report on Form 10-K filed March 11, 2025 with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company's website at www.aes.com.

Website Disclosure

AES uses its website, including its quarterly updates, as channels of distribution of Company information.  The information AES posts through these channels may be deemed material.  Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly SEC filings and public conference calls and webcasts.  In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the "Subscribe to Alerts" page of AES' Investors website.  The contents of AES' website, including its quarterly updates, are not, however, incorporated by reference into this release.

Investor Contact: Susan Harcourt 703-682-1204, susan.harcourt@aes.com
Media Contact: Katie Lau, 571-286-9362, katie.lau@aes.com

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SOURCE The AES Corporation

FAQ

What did AES announce on February 24, 2026 regarding Google and Wilbarger County (AES)?

AES announced 20-year PPAs and co-located generation to serve a new Google data center in Wilbarger County, Texas. According to the company, AES will secure land, interconnection, and build shared electricity infrastructure while owning and operating the generation assets to support the campus.

How long are the Power Purchase Agreements between AES and Google (AES)?

The agreements are for a 20-year term to supply co-located generation alongside the data center. According to the company, the long-term PPAs aim to support Google’s energy, reliability, and affordability goals while enabling rapid data center expansion.

Will AES own the generation assets for the Google Wilbarger County project (AES)?

Yes. AES will own and operate the generation assets and provide energy management services for the site. According to the company, AES will also provide retail, cost optimization, and related services under a long-term energy management agreement.

What operational or environmental benefits did AES and Google cite for the Wilbarger County project (AES)?

They cited minimizing local grid impact and protecting energy affordability while eliminating operational water use via advanced air-cooling. According to the company, pairing local clean generation with air-cooling preserves local resources and sustainability.

How does this deal affect AES’s track record with data center customers (AES)?

The announcement extends AES’s existing data center partnerships and footprint, noting nearly 12 GW signed with data center customers to date. According to the company, about 9 GW of those agreements are PPAs directly with hyperscalers.