Google Invests in Mega Energy Parks to Power Data Centers
Google has entered into a partnership with Intersect Power, an independent power producer, and TPG Rise Climate LP to design and build big energy plants next to data center campuses. The aim is to have enough renewable energy, battery storage capacity, and related transmission infrastructure to support multiple gigawatts of data centers for Google, which will cost around $20 billion.
Partnership Details
The partnership involves an equity investment by Google in Intersect Power, which raised over $800 million in a corporate fundraising round. TPG led the round, which included CAI and Greenbelt Capital Partners. This equity investment helps Intersect raise debt for the energy campuses.
Energy Parks
The energy parks would provide a reliable source of power as aging US grids struggle to meet demand from artificial intelligence and the electrification of homes, vehicles, and factories. Google, Microsoft, Amazon.com, and other big data center developers will require billions of dollars of investments to meet their AI needs.
Data Center Design
Google’s plan is to build data centers and new power supplies that connect to the same substation within a state or regional grid, which should help speed up the process to get them online. The company would pay 100% of the charges needed to upgrade the grid related to these projects, according to Amanda Peterson Corio, global head of data center energy at Google.
BYOP (Bring Your Own Power)
Think of it as BYOP, said Sheldon Kimber, CEO of Intersect Power. An AI campus that would use about one gigawatt of electricity would require a gigawatt each of wind, solar, and battery storage with two to four hours of duration, sprawled over at least 10,000 acres. A gigawatt is typically enough to power 200,000 homes in Texas and about four times that in other parts of the country.
Conclusion
Google’s investment in mega energy parks is a significant step towards reducing its carbon footprint and meeting its renewable energy goals. The partnership with Intersect Power and TPG Rise Climate LP demonstrates the company’s commitment to sustainability and its role in driving the global transition to renewable energy.
FAQs
Q: What is the size and location of the first project?
A: Google, TPG, and Intersect declined to state the size and location of the project.
Q: When is the first project expected to come online?
A: The first project is slated to come online in 2026.
Q: What is the total cost of the project?
A: The total cost of the project is estimated to be around $20 billion.
