Google invests big in clean energy company as it looks to aggressively expand AI data centres

Google is ramping up its clean energy commitments with a significant investment in Intersect Power, a developer of renewable energy solutions. The tech giant, alongside TPG Rise Climate and other backers, is participating in a funding round worth over $800 million. This move aligns with Google’s strategy to expand its data centre network, driven by a surge in demand for AI and cloud services.

The investment underscores Google’s aim to marry technological growth with sustainability. As the race to build AI-driven infrastructure intensifies among tech heavyweights like Microsoft and Meta, Google is taking a distinct approach by integrating clean energy into its data centre operations.

Demand for green energy explodes

Google plans to collaborate with Intersect Power and TPG Rise Climate on industrial parks that will combine massive data centre capacity with clean energy facilities. These projects aim to address the growing energy demands of technologies like generative AI while easing strain on the US power grid.

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By placing data centres next to dedicated carbon-free energy plants, Google hopes to streamline power delivery and speed up project timelines. This co-location approach is designed to boost grid reliability and meet the power demands of cutting-edge technologies, which have been outpacing the capacity of existing electrical systems.

A strategic partnership

Intersect Power’s new facilities will produce clean energy, with Google set to be a primary customer. The company plans to open data centres powered directly by these renewable sources as they come online. This arrangement ensures that clean energy capacity grows in tandem with Google’s operational needs, reducing delays and enhancing the resilience of the grid.

The first co-located project is expected to partially launch by 2026 and reach full operational capacity by 2027. This partnership not only marks a step forward in sustainable energy use but also highlights Google’s proactive approach to managing its environmental impact.

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How Intersect Power became a key player in clean energy

Intersect Power, established in 2016, specialises in scalable low-carbon energy solutions. As a portfolio company of TPG Rise Climate, a climate-focused investment fund, it has emerged as a leader in renewable energy development.

Through its collaboration with Google, Intersect Power is set to play a pivotal role in meeting the growing energy demands of next-generation technologies while advancing sustainable practices in the industry.