Google and TPG in strategic deal with clean energy firm Intersect Power

Intersect Power announced a strategic partnership with Google (GOOG) and TPG Rise Climate (TPG) to provide scaled renewable power and storage solutions to new data centers. The partnership is designed to deliver gigawatts of new data center capacity across the US with Intersect Power catalyzing a targeted $20B in renewable power infrastructure investment by the end of the decade. Intersect Power has already begun financing the partnership’s first co-located clean energy project, which is expected to be operational in 2026 and fully complete by 2027. “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,” said 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.” “To realize AI’s potential, the growth in electricity demand must be met with new, clean power sources. ..”Meeting the energy and computing demands of our next generation economy is necessitating the development of new models and partnerships,” said 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,” added Ed Beckley, a Managing Partner of TPG Rise Climate. Under the terms of the 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. Once built, the Google data center would come online alongside its own clean power, bringing new generation capacity to the grid to meet its own load. To further its vision throughout the U.S., Intersect Power also announced a more than $800M funding round led by TPG Rise Climate and Google, with participation from Climate Adaptive Infrastructure and Greenbelt Capital Partners. Morgan Stanley & Co. LLC acted as financial advisor on the transaction.