In recent months, nuclear power has garnered significant attention from energy-hungry tech companies, including Google. However, it appears that new reactors alone won’t suffice to meet their ambitious AI goals. Google is actively collaborating with partners to develop gigawatts of renewable power, battery storage, and grid upgrades to support its data centers.
Major Investment in Renewable Energy
On Tuesday, Google announced a partnership with Intersect Power, a renewable energy developer, and TPG Rise Climate, an investment fund, to generate enough carbon-free power to fuel several gigawatt-scale data centers. This initiative represents a monumental investment of approximately $20 billion in renewable energy, with Intersect already financing the first project, as reported by TechCrunch.
The agreement includes an $800 million equity investment in Intersect Power, led by TPG, with participation from CAI, Google, and Greenbelt Capital Partners.
Addressing Future Energy Needs
As tech giants like Google ramp up their AI capabilities, they face the challenge of ensuring that new data centers have sufficient power. Experts estimate that these facilities may be underpowered by 2027, prompting tech companies to seek new energy sources aggressively.
For this renewable energy project, a hypothetical 1 gigawatt-scale data center will be paired with an equivalent capacity of wind, solar, and battery storage, providing enough energy for two to four hours. Both the data center and renewable power park will connect to the same grid point, with Google committing to fund any necessary grid upgrades.
Streamlining Connections to the Grid
This strategic arrangement aims to expedite the connection process for both data centers and renewable parks. Currently, there are 11,860 active requests in the U.S. from power producers seeking to connect with the grid, totaling 2.05 terawatts of capacity waiting for connection—nearly double the current installed capacity. The majority of these requests are for solar and battery projects.
Google and Intersect are adopting a phased approach for this initiative, with the first phase expected to be operational by 2026 and full completion by 2027, showcasing the rapid deployment potential of renewable energy.
Competition with Nuclear Power
This pace could put pressure on nuclear power startups and developers, all of which face longer timelines. The fastest nuclear project—Microsoft’s restart of a reactor at Three Mile Island—is slated to come online in 2028. Meanwhile, Google’s collaboration with Kairos, a small modular reactor startup, has a 2030 deadline for its initial power plants, while Amazon’s contract with X-Energy targets the early 2030s.
However, these timelines depend on whether the projects proceed as planned, an area where the nuclear industry has historically faced challenges.
Sources
- TechCrunch – Google Partners with Intersect Power
- Bloomberg – Renewable Energy for Data Centers
- Interconnection.fyi – Active Requests for Grid Connection
