Tech & Innovation - December 10, 2024

Google's Revolutionary Green Data Centers: A New Era in AI

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Google's first-of-its-kind partnership with energy company Intersect Power and investment firm TPG Rise Climate aims to create a new standard in data center development. The $20 billion initiative plans to build industrial parks across the US, powered by renewable energy generated on-site. The first park is expected to be partially operational by 2026 and fully completed by 2027. This initiative could bypass the pollution problem posed by the US's fossil fuel-dominated electricity mix by connecting data centers directly to solar and wind farms and batteries for renewable energy.

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Rethinking Data Center Development

Amanda Peterson Corio, global head of data center energy at Google, believes the scale of AI presents an opportunity to completely rethink data center development. To realize AI's potential, the growth in electricity demand must be met with new, clean power sources. The exact details of the partnership, including the number of data centers and renewable energy power plants to be built, are yet to be determined.

A Shift in Location Strategy

Intersect Power CEO Sheldon Kimber suggests that tech companies should consider bringing data centers to areas where renewable energy is plentiful. This could lead to a shift away from traditional data center hubs like Virginia's 'data center alley', where approximately 70% of internet traffic passes through. Kimber advocates for a 'power-first' mentality, focusing on renewables and high solar and wind areas of the country.

Challenges in Traditional Data Center Hubs

Historically, affordable energy costs have attracted tech companies to data center hubs like Virginia. However, land availability for renewables is limited in these areas. Proximity to densely populated regions, another reason for the original concentration of data centers, also complicates the construction of new energy infrastructure.

It's time for the industry to really develop with more of a power-first mentality, Kimber says. And when you start with power first, you start with renewables, and you start with the high solar and wind areas of the country.