Intersect Power announced a strategic partnership with Google and TPG Rise Climate (TPG) to offer scaled renewable power and storage solutions to new data centers. This partnership is designed to deliver gigawatts of new data center capacity across the US. By the decade’s end, Intersect Power will catalyze a targeted $20 billion in renewable power infrastructure investment.
Intersect Power has already started financing the partnership’s first co-located clean energy project, which is expected to be operational in 2026 and complete by 2027.
This innovative approach to data center development represents an evolved model for significantly increasing the speed of infrastructure deployment, easing grid burden, and improving overall reliability and affordability for energy customers. By co-locating data center load with large amounts of high capacity factor, low-cost, clean electricity, and added battery storage, data centers can achieve high percentages of renewable energy while reducing the transmission required to connect generation to load over longer distances.
Under the terms of this partnership, Intersect Power will build new clean energy assets, with Google providing offtake via newly constructed data center campuses as an anchor tenant in co-located industrial parks. After being built, the Google data center would come online alongside its clean power, bringing new generation capacity to the grid to meet its load.
Intersect Power also announced a more than $800 million funding round led by TPG Rise Climate and Google, with participation from Climate Adaptive Infrastructure and Greenbelt Capital Partners.
Morgan Stanley acted as financial advisor on the transaction.
KEY QUOTES:
“This partnership is an evolution of the way hyperscalers and power providers have previously worked together. We can and are developing innovative solutions to expand data center capacity while reducing the strain on the grid. 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.”
- Sheldon Kimber, CEO and Founder of Intersect Power
“To realize AI’s potential, the growth in electricity demand must be met with new, clean power sources. The scale of AI presents an opportunity to completely rethink data center development — by co-locating them where possible with the grid-connected carbon-free energy that keeps them up and running. We’re bringing this opportunity to life by combining pioneers at the intersection of data centers and clean energy development to synchronize load growth with new power generation in a novel way. We hope to replicate this model in multiple markets across the U.S. and around the world.”
- Amanda Peterson Corio, Global Head of Data Center Energy at Google
“Meeting the energy and computing demands of our next generation economy is necessitating the development of new models and partnerships.”
- Jim Coulter, Executive Chairman of TPG and a Managing Partner of TPG Rise Climate
“By aligning capital, innovation, and ambition, we expect this partnership to achieve unprecedented scale at our first co-located project, and we have set ourselves on a course to deliver several more large scale co-located data centers and clean energy power plants across the US.”
- Ed Beckley, a Managing Partner of TPG Rise Climate
