Google, alongside TPG Rise Climate and other key investors, has participated in a funding round exceeding $800 million to support clean energy developer Intersect Power. This strategic investment aligns with Google's commitment to bolstering domestic data center capacity as the demand for cloud services surges, driven by advancements in artificial intelligence.
The collaboration extends beyond funding. Google is partnering with Intersect Power and TPG Rise Climate to establish industrial parks featuring gigawatts of data center capacity integrated with new clean energy facilities. This innovative approach aims to co-locate data centers with purpose-built, carbon-free energy sources, helping to alleviate power grid constraints and accelerate project timelines for both energy generation and data center operations.
As the U.S. power grid faces growing challenges to accommodate the rapid expansion of energy-intensive technologies like generative AI, Google's initiative seeks to address these issues head-on. By leveraging clean energy solutions, the company hopes to enhance grid reliability and reduce operational delays.
Google will serve as a primary customer for the clean energy generated by Intersect Power’s facilities, utilizing it to power its newly built data centers. "This means the Google data center would come online alongside its own clean power, bringing new generation capacity to the grid to meet our load, reduce time to operation, and improve grid reliability," the company stated.
The first phase of these co-located projects is scheduled to begin operations in 2026, with full completion expected by 2027. Founded in 2016, Intersect Power specializes in scalable low-carbon energy solutions and operates as a portfolio company of TPG Rise Climate, the climate-focused investment fund of TPG.
This partnership underscores Google's dedication to sustainable growth and its vision of integrating technology with environmentally conscious practices, paving the way for a more resilient and cleaner energy future.
