The upcoming Google data centers will be built alongside solar and wind farms.
A greater amount of renewable energy is required for artificial intelligence data centers.
Google has announced an innovative collaboration with developers to establish data centers powered by on-site renewable energy. This partnership involves Intersect Power, an energy company, and TPG Rise Climate, an investment firm, with plans for a $20 billion investment to develop an indefinite number of "industrial parks" in the United States over this decade. The first is expected to be partially operational by 2026 and completed by 2027.
This move represents a significant shift in the construction and operation of data centers. Both Google and its competitors are racing to find clean electricity sources to supply the demanding artificial intelligence (AI) data centers. However, the power grid in the U.S. continues to be dominated by fossil fuels, and connecting new data centers to the electric grid results in increased pollution. Thanks to this new collaboration, Google could avoid this issue by connecting directly to solar farms, wind parks, and batteries for renewable energy.
Amanda Peterson Corio, Google's global energy lead for data centers, indicated that the magnitude of energy demand driven by AI presents an opportunity to rethink data center development: “To realize the potential of AI, the growth in electricity demand must be met with new sources of clean energy.”
While some details about the partnership have been disclosed, the exact figures for the new capacity planned for development have not yet been revealed. Currently, Google and Intersect are working to determine how many data centers and renewable energy plants will be built, as well as their locations. According to Sheldon Kimber, CEO of Intersect Power, it's essential for tech companies to consider situating their data centers in areas where there is an abundance of renewable energy.
This trend could move data center development away from traditionally crowded locations like Virginia, where about 70% of internet traffic flows through the “data center zone.” The growing energy demand from AI has prolonged the life of nearby coal power plants, raising concerns about the impact of data centers on climate change and air quality.
An innovative aspect of this partnership is that Google handles its own energy and infrastructure needs for the new data centers. Intersect Power would be responsible for developing, owning, and operating the localized power plant. Google could either build its own data center on the same site or lease the data campus and purchase the generated electricity.
It is noteworthy that this strategy would also relieve utility companies from the need to invest in new infrastructure, which could translate into lower costs for consumers in the region. Additionally, Intersect Power has announced $800 million in funding led by Google and TPG Rise Climate. Despite this funding injection, Intersect will need to secure the remaining financing to complete the development of the industrial parks.
Finally, although this "bring your own energy" strategy promises to accelerate the transition to renewable sources, the approval process for connecting the new centers to the local electric grid can be lengthy. Furthermore, it is important to highlight that Google’s carbon footprint has increased by 48% since 2019, despite its commitment to reduce that pollution by half by the end of the decade.
