Google begins $20B renewable energy initiative to power AI operations
Google has announced a "first-of-its-kind partnership" with Intersect Power and TPG Rise Climate to build data centers powered by on-site renewable energy. The $20 billion project will see the establishment of multiple "industrial parks" across the US within this decade. The first facility is expected to be partially operational by 2026 and fully completed by 2027.
A shift toward renewable energy for data centers
This collaboration marks a major departure from the construction and operation of data centers, which have long depended on fossil fuels. The partnership will enable Google to connect directly with solar and wind farms and batteries for renewable energy, minimizing pollution from connecting new data centers to the power grid.
AI's growth necessitates clean power sources
Amanda Peterson Corio, Google's global head of data center energy, said that the growth in electricity demand due to AI's potential must be met with new, clean power sources. She further stressed that the scale of AI presents an opportunity to completely rethink data center development. However, specific details about the partnership and its plans for new capacity remain undisclosed at this time.
Tech companies should consider renewable energy-rich locations
Sheldon Kimber, CEO of Intersect Power, suggested tech companies should consider bringing data centers to areas where renewable energy is abundant. He stressed the industry needs to develop with a power-first mentality, starting with renewables and high solar and wind areas of the country. This could potentially shift data center development away from traditional hubs like Virginia's "data center alley."
Google's new approach to energy infrastructure
With this partnership, Google is basically telling utilities that it will take care of its own electricity needs and energy infrastructure for new data centers. Intersect Power would develop, own, and operate the co-located power plant while Google would either build its data center at the same site or rent space for data center from Intersect Power and purchase the electricity it generates.
Intersect Power secures funding for industrial parks
Intersect Power has raised $800 million led by Google and TPG Rise Climate to develop the industrial parks. However, it will have to raise more money to bring these projects to fruition. Despite the challenges, this "bring your own power" strategy is likely to speed up the transition to renewable energy and help tech companies meet their climate goals.
