Google announced a partnership with Intersect Power and TPG Rise Climate on Monday to align data center expansion with renewable energy generation.
According to a statement, this collaboration promises to accelerate America’s transition to carbon-free computing, tackling the rising energy demands of artificial intelligence and the urgency of decarbonization.
The partnership seeks to create a new paradigm in infrastructure development, co-locating industrial parks combining gigawatts of data center capacity with new clean energy plants.
The first phase of this ambitious project is expected to begin operation by 2026 and reach full completion by 2027.
“This partnership was motivated by the reality that resources are necessary to capture AI’s extraordinary potential to advance scientific breakthroughs and solve critical challenges in healthcare, education and beyond — and generate economic growth,” said Ruth Porat, president and chief investment officer at Alphabet and Google, in her blog.
A Convergence of Opportunities
With AI poised to drive unprecedented economic growth — potentially adding over a trillion dollars annually to US GDP by 2030 — the collaboration highlights the critical role of robust energy systems.
The dual forces of AI-driven innovation and the electrification of transportation and manufacturing industries have heightened the need for reliable, sustainable electricity.
“Decarbonization and digitization are converging in ways that demand creative solutions,” said Jim Coulter, Executive Chairman of TPG and Managing Partner of TPG Rise Climate in the statement.
“By aligning the expertise of a leading clean energy company, a hyperscale technology leader, and a climate-focused investor, we can deliver carbon-free data centers at greater scale and lower cost.”
Powering AI Responsibly
The American energy grid has struggled to keep pace with growing demand because of bottlenecks and aging infrastructure.
Average timelines for new power project approvals have doubled in recent decades, from under two years in the early 2000s to more than four years today.
Google, Intersect Power, and TPG Rise Climate aim to address these challenges by integrating clean energy generation directly into data center development.
New renewable energy facilities are custom-designed in this model to power Google’s data centers. This tight coupling reduces the strain on the grid, accelerates project delivery, and enhances grid reliability.
“This partnership is an evolution of how hyperscalers and power providers collaborate,” said Sheldon Kimber, CEO and Founder of Intersect Power in the statement.
“By co-developing projects, we can expand clean power capacity at scale while creating opportunities for rural communities and tackling the rapid growth in AI-related energy demand.”
A New Model for Infrastructure
The partnership has set a blueprint for the future through investments in clean energy and innovative co-location strategies. It is designed to streamline the development of energy-intensive projects, reduce costs, and support equitable access to renewable energy resources.
As the energy landscape evolves, this collaboration could signal a turning point in how public and private sectors work together to address urgent challenges, positioning the US as a leader in both fields — ensuring a cleaner, smarter and more connected future.
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