In January, AEP disclosed a roughly $2.65 billion agreement to buy a large share of its option for Bloom Energy fuel cells for a plant near Cheyenne, Wyoming, and a 20-year deal to sell the plant’s entire output. The filing did not name the customer.
On Wednesday it did. American Electric Power (Nasdaq: AEP) said it plans to invest about $4 billion in a 702-megawatt fuel cell project near Cheyenne under a 20-year power purchase agreement with Google.
Google will buy power from Cheyenne Fuel Cell, LLC, which is about 92% owned and controlled by AEP. Funds advised by Basalt Infrastructure Partners hold nearly 8%. AEP plans to start construction in 2026 and expects full operations by the end of 2028.
Bloom’s solid oxide fuel cells make electricity through an electrochemical reaction instead of burning fuel. Bloom says this gives higher efficiency and lower emissions. AEP said the plant will generate power without combustion of natural gas and will integrate carbon capture to deliver near-zero-emissions power. The release gives no detail on the capture system, such as its scale, timing or where the captured carbon would go.
The plant is meant to serve a data centre campus. Google is advancing plans for a campus in Laramie County, near Cheyenne. The proposed Project Tembo was reported in September as a $17 billion development, with local discussions covering electricity supply, water use and environmental impacts. AEP said the project follows agreements between Google and Black Hills Corp., effective 30 September.
Wyoming is outside AEP’s usual patch. The company’s home territory is Ohio and neighbouring states. In June 2025, AEP won approval from the Public Utilities Commission of Ohio to install, own and operate on-site fuel cells for Amazon Web Services and Cologix.
AEP chief executive Bill Fehrman said the company is bringing “new technologies and strong partnerships to deliver reliable, innovative energy solutions quickly and at scale.” He added that the project shows how AEP is creating opportunities for customers both within and beyond its traditional service territory.
The $4 billion works out to about $5.7 million per megawatt, by the arithmetic of one analyst site. AEP’s release does not break down the figure. AEP shares rose 0.3% in pre-market trading on the news.
AEP has not said how much of the $4 billion is equipment and how much is construction and carbon capture. It has also not said how much the plant will cost Google per unit of power. The Google campus is still a proposal under local discussion.
