Alphabet’s Google, along with TPG Rise Climate and other investors, is backing clean energy developer Intersect Power as part of its more than $800 million funding round, the company said on Tuesday.
TakeAway Points:
- Google, a division of Alphabet, TPG Rise Climate, and other investors are supporting renewable energy producer Intersect Power as part of a funding round worth over $800 million.
- Oracle missed on the top and bottom lines for the latest quarter.
- The company’s second-quarter sales grew 9% year over year.
- Oracle shares are up more than 80% this year, on pace for their best annual performance since 1999.
Google invests in over $800 million funding round
Google’s capital investment in Intersect Power comes as the tech giant, like other “hyperscalers,” including Microsoft 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.
Oracle Shares Decline And Misses Revenue
Oracle shares tumbled more than 8% on Tuesday morning, one day after the database software company released a weaker-than-expected forecast and fiscal second quarter earnings that did not meet analysts’ expectations.
Earnings per share: $1.47 adjusted vs. $1.48 expected, while revenue: $14.06 billion vs. $14.1 billion expected
Oracle’s second-quarter sales grew 9% year over year.
Net income increased 26% to $3.15 billion, or $1.10 a share, from $2.5 billion, or 89 cents a share, a year earlier. Revenue in Oracle’s cloud services business jumped 12% from a year earlier to $10.81 billion, accounting for 77% of total revenue.
Oracle’s biggest growth engine has been cloud infrastructure, where it is competing with Amazon, Microsoft, and Google as businesses move workloads out of their own data centers.
The business is booming due to soaring demand for computing power that can handle artificial intelligence projects. Oracle said revenue in its cloud infrastructure unit soared 52% from a year earlier to $2.4 billion.
Oracle’s agreement with Meta
The company said it just signed an agreement with Meta, allowing the social media company to use its infrastructure to help with various projects related to the Llama family of large language models.
“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds,” Oracle founder Larry Ellison said in a statement.
For the current quarter, Oracle expects revenue growth of 7% to 9%. At the midpoint of that range, revenue would be about $14.3 billion. Analysts were expecting sales of $14.65 billion, according to LSEG. The company said it expects adjusted earnings of $1.50 to $1.54 per share. Analysts were calling for earnings per share of $1.57.
In September, Oracle raised its fiscal 2026 revenue guidance to $66 billion, which was about $1.5 billion more than what analysts projected. During that month, Oracle also announced that its cloud unit would start taking customer orders for so-called computing clusters derived from more than 131,000 Nvidia
“Blackwell” graphics processing units, used for AI model training and related tasks.
As of Monday’s close, the stock is up more than 80% this year, headed for its best annual performance since 1999.
