Indiana regulators approve AES Indiana’s $737.3 million grid build for Google’s 390‑MW data center

The Indiana Utility Regulatory Commission unanimously approved a plan for AES Indiana to construct solar generation, battery storage and transmission upgrades totaling $737.3 million to serve a new 390‑megawatt Google data center in Monrovia. The commission found the proposal satisfies a 2025 state law that obliges large electricity users to cover at least 80 % of the costs they add to the grid, and the parties said Google will fund the entire project. Regulators noted that while the law aims to protect existing ratepayers, a consumer group warned that some of the upgrade costs could still be allocated to customers.

The approval clears the way for AES Indiana to begin the $737.3 million build, shifting the financial burden of the grid expansion to Google rather than residential customers. This sets an early precedent for how state cost‑allocation rules may affect future cloud‑provider infrastructure projects.

  • 1The Indiana Utility Regulatory Commission approved a $737.3 million plan for AES Indiana to build solar, battery storage and transmission infrastructure for a 390‑MW Google data center in Monrovia.
  • 2Google will pay the full cost of the project, including $32.3 million for direct‑connection facilities and $73.8 million for network upgrades that will be recovered through AES’s transmission rate base.
  • 3The project is the first data‑center filing under Indiana’s 2025 law requiring large electricity users to cover at least 80 % of grid costs they generate.
  • 4AES estimates the total infrastructure investment at $1.3 billion, of which $737.3 million is for the solar, battery and transmission components.
  • 5The contract with Google is expected to last at least 15 years.

Sources