As more data centers are built, the power grid is under more stress. Fortunately, Google plans to build data centers alongside more affordable energy sources.
According to Canary Media, Google is teaming up with TPG Rise Climate, a department of the private equity company, and energy developer Intersect Power. The private equity firm has "$239 billion under management," and Intersect Power has "raised more than $1 billion in equity and $5 billion in project finance." The energy developer will use that money to colocate data centers with wind, solar, and battery projects.
TPG Rise Climate has also helped Intersect Power raise over $800 million.
The energy company is already funding the first Google partnership project. The location hasn't been disclosed yet, but it's expected to be operational in 2026 and complete by 2027.
"We're trying to think about colocation as forward-looking," Google global lead of data center energy Amanda Peterson Corio said.
She added, "Where we can implement this strategy, we think it's a great way to reduce grid stress and make new load as clean as possible."
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According to Grid Strategies, electricity demand has increased significantly. In 2022, it was 23 gigawatts; by December 2024, it had risen to 128 gigawatts. The report also indicates that "nationwide electric demand is forecast to increase by 15.8% by 2029."
A recent study says that adding solar and wind to the grid can diversify energy sources, making the grid more reliable and stable.
That's even more important as artificial intelligence and cryptocurrency mining each require large totals of power to run, something that is still a relatively new challenge for the world's energy grids. As more and more of each begin to be responsible for their own energy demands, however, that burden becomes more manageable. Google, as one of the biggest AI and tech companies on the planet, is an especially big user of energy and has been criticized by advocates and regulated by governments for the issue, so any step in the right direction like this will help to lessen the load.
The upside of connecting solar and wind to the grid is it can save you money. According to Palmetto, reduced stress on the grid lowers operational and maintenance costs, saving you money on your utility bills.
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Reducing communities' reliance on dirty energy sources will reduce the polluting gases emitted into the atmosphere, improving air quality.
"Where the wind resource is good, and the solar resource is good enough, with the addition of battery storage, you can get to a place where 80 percent-ish of the hours of the year are powered on-site by clean energy," Intersect Power CEO Sheldon Kimber said.
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