Data centers are essential to modern infrastructure, powering everything from cloud storage to artificial intelligence. As digital demand rises, so does their energy consumption. Currently, data centers account for an estimated 2-4% of global electricity use,[1] with projections suggesting this could rise to 9% by 2030,[2] making them one of the largest growth drivers for additional electricity. As renewable energy infrastructure struggles to keep pace, much of the new energy needed to power data centers comes from fossil fuels, further driving emissions and contributing to climate change. While this issue remains pressing, Alphabet (Google) is beginning to publicly address it and take steps to align data center growth with clean, renewable energy.
One example of Alphabet’s efforts is its partnership with Intersect Power and TPG Rise Climate to co-locate new data centers with renewable energy sources. Co-location is significant, because it means that renewable energy would fill the demand gap, reducing the need for fossil fuels to meet energy demands as is common today. This collaboration aims to reduce the carbon footprint of data centers, improve grid reliability, and accelerate the transition to clean energy. The first co-located clean energy project is expected to be operational by 2026, with full completion in 2027.[3]
Alphabet is also working in Georgia, where sustainably meeting data center energy demands is challenging due to the grid’s reliance on coal and natural gas. As a member of the Clean Energy Buyers Association (CEBA), Alphabet is collaborating with other major data operators with clean energy goals, including Amazon, Meta, and Microsoft. CEBA has been actively engaging with Georgia Power to push for cleaner energy alternatives like wind, solar, and battery storage projects, and to allow commercial and industrial companies to contract for clean energy.[4]
Despite these partnerships and efforts in Georgia, this is only a commitment to taking the first step. Alphabet and other major data center players like Microsoft, Amazon, and Equinix are still taking steps backward, as they continue to build data centers in regions where fossil fuels are necessary to fill the gaps in energy demands. Nonetheless, we’ve engaged with data center companies on these issues, and Alphabet is the first to openly recognize the need for change and commit to doing better in the future. While this acknowledgement is a step forward, it is not enough, and this solution needs to be applied broadly to new data centers in order to reduce their emissions from purchased electricity.
Ultimately, addressing the growing demand for sustainable digital infrastructure while reducing emissions is a significant challenge, but Alphabet’s actions show that progress is possible when technology and clean energy work together.
If you are interested in reading more about corporate work to lower negative environmental impacts, please see other EP Insights from Terra Alpha here.