Google signs a $20 billion partnership to power data centers with renewable energy

Google, TPG Rise Climate and Intersect Power have announced a strategic partnership aimed at accelerating the development of renewable energy-powered data centers across the U.S. The collaboration is set to inject $20 billion in new renewable power infrastructure by the end of the decade. 

In press releases, the companies informed that this initiative is a “power-first” approach to data center design, which seeks to mitigate grid strain while enhancing energy reliability and affordability. 

To support this effort, the partnership has secured an $800 million funding round, led by TPG Rise Climate and Google, with additional backing from Climate Adaptive Infrastructure and Greenbelt Capital Partners. The funds will be used to finance the initial clean energy assets and infrastructure required to launch the co-located data center projects. Morgan Stanley & Co. LLC served as the financial advisor for the transaction. This funding will also help develop long-term renewable energy solutions that directly address both energy demand and environmental concerns.

The partnership aims to meet the growing energy demands of the rapidly expanding data center sector, driven in large part by the explosion of artificial intelligence (AI) applications. Intersect Power will spearhead the development of large-scale clean energy assets, including solar, wind, and battery storage systems, with Google serving as a key anchor tenant for new co-located data center campuses that will harness this renewable power.

By 2026, the International Energy Agency (IEA) expects the energy demand from data centers, cryptocurrencies, and artificial intelligence to double, highlighting the urgent need for solutions that align with the sustainability goals of these industries.

By co-locating data centers with high-capacity, low-cost, clean energy sources, the partnership intends to reduce the need for extensive transmission infrastructure, thus lowering costs and minimizing transmission losses. The first project of the partnership is already in motion, with plans for a large-scale, co-located data center and clean energy generation facility expected to be operational by 2026 and fully completed by 2027.