Today, Google is entering a strategic partnership with Intersect Power and TPG Rise Climate to synchronize new clean power generation with data center growth in a novel way. The tri-party partnership brings a new approach that can enable U.S. leadership in AI development, while thoughtfully building data center load next to new additional power generation where possible — reducing both the timeline to operation and the amount of new transmission required.

Together, Google, Intersect Power and TPG Rise Climate will develop industrial parks with gigawatts of data center capacity in the U.S., co-located with new clean energy plants to power them. The first phase of the first co-located clean energy project is expected to be operational by 2026 and fully complete in 2027. Additionally, Google, TPG Rise Climate and other investors are making a capital investment in Intersect Power.

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.

Economists estimate the GDP uplift of AI in the U.S. alone could be in excess of a trillion dollars annually by 2030. Additionally, there is the upside from two additional catalysts for the U.S. economy and job creation: first, onshoring of manufacturing operations and second, the electrification of the transport, heating and cooling sectors. These profound opportunities require expanding electricity capacity with reliable, secure power sources. But to capture the upside, the public and private sector each need to do their part to support the development of job-creating power infrastructure.

To that end, Google is focused on evolving digital infrastructure development by co-locating grid-connected carbon-free energy and data center investments into closely-linked infrastructure projects. This approach is an important complement to efforts to unlock development of new transmission infrastructure and to optimize utilization of the existing grid.

A new approach to data center siting and power

America’s electricity grid planning and investment have not kept pace with the country’s economic growth opportunity. Many regional grids face generation capacity and transmission bottlenecks, leaving them unable to accommodate load increases. As a result, for U.S. power projects, the typical time from proposal to construction has more than doubled, from less than two years for projects built in 2000-2007 to more than four years for those built in 2018-2023.

To address these grid constraints, Google’s partnership with Intersect Power and TPG Rise Climate will deliver new clean energy that is purpose-built and right-sized for the data center. When Intersect Power builds new clean energy assets in regions and projects of interest, Google will be able to provide power offtake as an anchor tenant in the co-located industrial park that would support data center development. Once built, this means the Google data center would come online alongside its own clean power, bringing new generation capacity to the grid to meet our load, reduce time to operation and improve grid reliability.

“The convergence of two megatrends — decarbonization and digitization — is creating unique opportunities for innovative partnerships,” says Jim Coulter, Executive Chairman of TPG and Managing Partner of TPG Rise Climate. “Bringing together a leading carbon-free power producer, one of the world’s largest hyperscalers and the leading private equity investor in climate solutions to capitalize on this opportunity, we are committed to delivering carbon-free data centers at lower cost and greater scale.”

A first-of-its kind partnership

The new agreement brings together pioneers at the intersection of clean energy and data center development. Intersect Power is a leading clean energy company, providing scalable low-carbon solutions to customers in global energy markets. It is a portfolio company of TPG Rise Climate, a market leading private equity investor in scaling climate solutions globally. At Google, we have invested in computing infrastructure for decades. Google’s data centers are among the most efficient in the world, helping meet growing demand for Google Cloud and powering our other digital services — like Search, Maps and Workspace — that organizations and people around the world use every day.

“This partnership is an evolution of the way hyperscalers and power providers have previously worked together. We can and are developing innovative solutions to rapidly expand clean power capacity at scale while reducing the strain on the grid," says Sheldon Kimber, CEO and Founder of Intersect Power. "Deep, collaborative partnerships combined with creative problem-solving are the only way that we can meet the explosion of AI growth, as well as society’s accelerating electricity demand. Our approach makes it possible to do all of this and unlock meaningful opportunities for rural economic development along the way."

A blueprint for the future

This model is a great opportunity to apply private capital to the tight coupling of load growth with new clean energy in markets across the U.S. (and ultimately globally). This “power first” approach to data center development is an evolved model that can significantly reduce delivery timelines of new power generation and the projects that will use it — and is designed to ease grid burden and improve overall reliability and affordability for all energy customers.

In close coordination with grid planners, operators and communities, Google will continue to otherwise invest in local clean energy resources that drive economic benefits and competitively-priced clean energy capacity. It is crucial that markets expand their digital infrastructure responsibly and sustainably, ultimately increasing access to clean energy capacity for all.