Dec 10 (Reuters) - Alphabet's Google, along

with TPG Rise Climate and other investors, is backing clean

energy developer Intersect Power as part more than $800 million

funding round, the company said on Tuesday.

Google's capital investment in Intersect Power comes as the

tech giant, like other "hyperscalers" including Microsoft ( MSFT )

and Meta, races to bolster its domestic data

center capacity to meet the AI-driven surge in cloud demand.

The company is also partnering with Intersect and TPG Rise

Climate to develop industrial parks. These parks will house

gigawatts of data center capacity co-located with new clean

energy plants.

By building data centers next to purpose-built, carbon-free

energy sources, Google aims to ease power grid constraints and

reduce delivery timelines for both power generation and data

center projects.

U.S. electrical systems have struggled to keep pace with the

rapidly growing power needs of new technologies like Generative

AI. This growth threatens to stress the country's increasingly

vulnerable power grid.

Google will be a main customer for the clean energy produced

by Intersect Power's new facilities and will open new data

centers that use this clean energy right away, the company said.

"This means the Google data center would come online

alongside its own clean power, bringing new generation capacity

to the grid to meet our load, reduce time to operation and

improve grid reliability," Google said in a statement.

The first phase of the first co-located project is expected

to be operational by 2026 and fully complete in 2027.

Founded in 2016, Intersect Power provides scalable

low-carbon solutions to energy customers and is a portfolio

company of TPG Rise Climate, which is the climate-focused fund

of private equity firm TPG.