Google partners with major climate investor to build 'AI-ready' data centres

The tie-up, outlined in a blog post on Google's website, aims to tackle one of the thorniest challenges facing AI development: how to power the massive computing needs without overwhelming existing power grids or relying on fossil fuels.

"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," said Sheldon Kimber, CEO and founder of Intersect Power.

Investment in Intersect Power

The first phase is expected to be operational by 2026, with full completion in 2027. As part of the deal, Google and TPG Rise Climate are also making a capital investment in Intersect Power, though the amount wasn't disclosed.

The timing is crucial – economists predict AI could add over a trillion dollars annually to US GDP by 2030, according to Google. But that growth is threatened by America's ageing power infrastructure, where project timelines have doubled from two years to over four years since 2000.

"The convergence of two megatrends – decarbonisation and digitisation – is creating unique opportunities for innovative partnerships,' said Jim Coulter, Executive Chairman of TPG and Managing Partner of TPG Rise Climate.

"Blueprint for sustainable AI"

Google argues that the model could serve as a blueprint for sustainable AI infrastructure globally. Rather than competing for limited grid capacity, each new data centre would come online alongside its own clean power supply, improving grid reliability while enabling continued AI development.

The approach also promises economic benefits for rural areas where these facilities might be located, though specific locations weren't mentioned in Google's announcement.