American Electric Power Company, Inc. (AEP) announced Wednesday that it plans to sink roughly $4 billion into a 702-megawatt fuel cell power project near Cheyenne, Wyoming, all in service of Alphabet Inc.'s (GOOGL) Google.
The project is backed by a 20-year power purchase agreement under which Google will buy electricity from Cheyenne Fuel Cell LLC.
AEP owns and controls approximately 92% of the project company, while funds advised by Basalt Infrastructure Partners LLP hold nearly 8%.
Construction is expected to begin in 2026, with the facility scheduled to become fully operational by the end of 2028.
Bloom Energy Technology To Support Google's Power Needs
The facility will use advanced fuel cell technology developed by Bloom Energy Corporation (BE) to meet Google's growing electricity needs in the Cheyenne area.
The technology generates electricity from natural gas without combustion. In addition, the project includes plans to integrate carbon capture technology to deliver near-zero-emissions power.
Fuel cells can also be deployed rapidly and provide on-demand electricity, making them suitable for large-scale customers with growing energy requirements.
The project follows agreements between Google and Black Hills Corp. that took effect Sept. 30.
AEP Expands Beyond Traditional Utility Markets
AEP Chairman and CEO Bill Fehrman said rising electricity demand is creating opportunities for the company to combine new technologies with strategic partnerships.
He added that the project supports AEP's strategy to serve large customers both within and beyond its traditional utility markets.
The investment also aligns with AEP's broader infrastructure expansion plans.
The company expects to invest $78 billion from 2026 through 2030 to improve electricity service and meet growing demand.
AEP serves approximately 5.6 million customers across 11 states. It operates about 33,000 megawatts of owned and contracted generating capacity, along with the nation's largest electricity transmission network.
The company also provides competitive energy solutions nationwide through AEP Energy.
AEP Price Action: American Electric Power shares were up 0.55% at $126.34 at the time of publication on Wednesday, according to market data.
