Power & Sites · United States

AEP Plans $4 Billion, 702 MW Fuel-Cell Power Project for Google

Credited to Converge Digest · convergedigest.com · 15h ago

Photograph · Converge Digest

American Electric Power (AEP) plans to invest approximately $4 billion in a 702 MW Bloom Energy fuel-cell project near Cheyenne, Wyoming, supported by a 20-year power purchase agreement with Google. The project will be developed through Cheyenne Fuel Cell, LLC, approximately 92% owned by AEP and nearly 8% held by funds advised by Basalt Infrastructure Partners. Construction is planned for 2026, with full operations targeted by the end of 2028.

The installation extends AEP’s infrastructure development beyond its traditional utility service territory and demonstrates how hyperscalers are pursuing dedicated generation as AI data center demand grows.

AEP + GOOGLE $4 BILLION PLANNED FUEL-CELL INVESTMENT

Schedule — Construction 2026; full operation end-2028

WHY IT MATTERS Long-term hyperscaler electricity procurement is supporting large-scale deployment of distributed fuel-cell generation.

Analysis: Fuel Cells Become a Strategic Option for Hyperscale AI Power

The AEP-Google agreement illustrates how AI infrastructure is reshaping electricity procurement. Hyperscalers are increasingly pursuing dedicated generation to address rising compute loads and long transmission-development timelines. At 702 MW, the project brings fuel cells to a scale more commonly associated with conventional power plants. For AEP, it extends development beyond its regulated utility footprint. Its previously disclosed $2.65 billion fuel-cell procurement commitment and broader $78 billion 2026–2030 capital plan illustrate the scale of investment directed toward large electricity customers.

Bloom Energy’s solid oxide fuel cells generate electricity electrochemically rather than through conventional combustion, providing continuous output with comparatively low local air-pollutant emissions. They are not inherently carbon-free when fueled by natural gas, making proposed carbon capture integration important to the project’s environmental objectives. Google’s wider energy strategy includes renewables, geothermal, nuclear and other firm power resources, reflecting the need for multiple technologies to supply round-the-clock data center demand.

The 20-year PPA provides long-term demand visibility for AEP while allowing Google to secure electricity without directly owning the plant. Nevertheless, the $4 billion project carries construction, fuel supply, equipment, grid integration, maintenance and financing risks. Its economics will be tested against conventional gas generation and other firm-power alternatives. Key milestones include construction progress, carbon capture integration and delivery of the full planned 702 MW by the end of 2028.

🌐 We’re tracking AI infrastructure and data center power developments on Converge Digest.

Power & SitesUnited States

New zoning rules and moratoriums for US BESS and data centres

Credited to Energy-Storage.News · energy-storage.news17h ago

Useful

From the Midwest to New York, local and state governments are introducing new zoning rules and restrictions on BESS and data centre projects.

View the articleEnergy-Storage.News

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Power & Sites · United States

Meta under investigation regarding alleged tax filings claiming data center projects qualify for research credits

Credited to Data Center Dynamics · datacenterdynamics.com · 17h ago

Photograph · Data Center Dynamics

United States Senate Committee on Finance writes to CEO Mark Zuckerberg

Meta is being looked into by the Democrats on the US Senate Committee on Finance regarding its federal tax filings.

In a letter to CEO Mark Zuckerberg, the Senate noted that public reports suggest Meta has been claiming to the Internal Revenue Service (IRS) on federal tax filings that its AI data centers qualify as “pilot models” and are thus eligible for research credits, reports Bloomberg.

Should this be true, Meta would have saved billions of dollars on its AI data center buildout, including on the purchase of hardware and equipment, which the latter states is “in violation of the spirit and, potentially, the letter of the tax law.”

Research credits are a dollar-for-dollar income tax reduction for businesses that invest in domestic innovation, product design, or process improvements.

In annual regulatory filings, Meta claimed $700 million in research credits in 2023, $2 billion in 2024, and $4bn in 2025. In 2025, all research credits cost the government $32bn, meaning Meta took up more than 10 percent.

The social media giant's capex in 2025 was $72.2bn, up from $37.2bn in 2024. The company is currently estimating its capex for 2026 will reach up to $145bn.

The letter states: “While it remains unclear exactly how Meta was able to reduce its federal tax liability by over $6.6 billion in the last three years using federal research credits, it appears from published reports that a substantial share is by claiming the research credit related to its massive AI data center buildout.

“Under section 41 of the Internal Revenue Code, companies may claim the research credit for costs related to domestic research or experimental expenditures. The research credit is intended to help offset the cost of experimental efforts with a high risk of technical uncertainty; it is not intended for standard business operations or commercially available technologies already in use.”

Meta’s most recent Annual Report acknowledges its “uncertain tax positions,” stating this is related to “uncertainties with our research and development tax credits that are based on an assessment of whether our available documentation corroborating the nature of our activities supporting the tax credits will be sufficient.”

Certainly, Meta has used some uncommon construction methods for its data center buildout, notably building data centers in tents - or rapid deployment structures made of puncture-resistant and waterproof fabric

Finally, the Committee on Finance has called for Meta to provide answers to ten questions by the end of October, 2026. The questions include whether the research tax credits relate to the company’s data center build-out, whether the company consulted with EY or other professional accounting firms before filing to claim the credits, and a request for justification for each year’s research credit claims.

The letter was signed by United States Senators Sheldon Whitehouse, Catherine Cortez Masto, Ron Wyden, Ben Ray Lujan, Peter Welch, and Margaret Wood Hassan, as well as the ranking member of the Committee on Banking, Housing, and Urban Affairs, Elizabeth Warren.

DCD has reached out to Meta for comment.