Google, alongside TPG Rise Climate and other investors, has announced an investment exceeding $800 million in clean energy developer Intersect Power. This funding round aims to enhance Google's data center capacity amid rising cloud demand driven by artificial intelligence.
The partnership includes the development of industrial parks that will integrate gigawatts of data center capacity with new clean energy plants. By situating data centers near carbon-free energy sources, Google intends to alleviate power grid constraints and expedite project timelines.
As the demand for technologies like Generative AI escalates, US electrical systems are struggling to meet these needs, putting pressure on the power grid. Google plans to be a primary customer for the clean energy produced by Intersect Power's facilities, with new data centers set to utilize this energy immediately.
According to Google, this initiative will allow data centers to commence operations alongside their clean power sources, contributing additional capacity to the grid and enhancing reliability. The first phase of this project is projected to be operational by 2026, with full completion anticipated in 2027.
Intersect Power, founded in 2016, specializes in scalable low-carbon energy solutions and is part of TPG Rise Climate, the climate-focused fund of TPG.