Alphabet, the parent company of Google, has agreed to acquire Intersect Power for $4.75 billion in cash, plus the assumption of the company’s debt. Intersect Power is a developer of data centers and clean energy. The acquisition was announced on Monday.
This move will help Alphabet expand its own power-generation capacity to support new data centers. It reduces reliance on local utilities, which have been struggling to meet the soaring energy demands of artificial intelligence companies. Securing direct access to energy has become a critical need for training advanced AI models.
Alphabet previously held a minority stake in Intersect Power. That stake resulted from a strategic funding round led by Google and TPG Rise Climate last December, which raised $800 million. That initial partnership set a target of $20 billion in total investment by the year 2030.
The acquisition includes Intersect’s future development projects but excludes its existing operations. Those existing operations will be bought out by other investors and managed as a separate company.
Intersect’s new data parks are located next to sources of wind, solar, and battery power. They are expected to become operational late next year and be fully completed by 2027. The transaction is expected to close in the first half of next year.
Google will be the primary user of these facilities. However, Intersect’s campuses are designed as industrial parks that can also host AI chips from other companies alongside Google’s own.