In a major move to secure power for its artificial intelligence ambitions, Alphabet Inc., the parent company of Google, announced on Monday its decision to acquire clean energy developer Intersect Power. The deal, valued at $4.75 billion in cash plus the assumption of existing debt, stands as one of Alphabet's largest investments to expand its data centre capacity.
The Driving Force Behind the Mega Deal
The acquisition comes at a critical time when major technology companies, collectively known as Big Tech, are scrambling to invest in energy assets. This push is a direct response to the soaring energy demands of generative AI technologies, which are straining power grids across the United States. Data centres, the backbone of AI computation, require immense and reliable electricity, creating a new frontier in the energy market.
Google and Alphabet CEO Sundar Pichai highlighted the strategic importance of the deal. He stated that Intersect would enable the company to expand capacity, build new power generation in sync with new data centre load, and innovate energy solutions to bolster US leadership in technology.
What the Intersect Acquisition Entails
Alphabet is not a new investor in Intersect. The tech giant already held a minority stake from an $800 million funding round in December last year. Under the new agreement, Alphabet will specifically purchase Intersect's energy and data centre projects that are currently under development or construction.
However, the deal has clear boundaries. Intersect's other operations will remain separate and intact from Alphabet. According to reports, the company's existing operating assets in Texas and its operating and development assets in California are not part of this transaction. Intersect will continue to operate under its own brand and will be led by its current CEO, Sheldon Kimber.
"Intersect’s operations will remain separate from Alphabet and Google under the Intersect brand and will be led by Sheldon Kimber. It will partner closely with Google’s technical infrastructure team," Alphabet clarified in an official statement. This partnership includes work on a co-located data centre and power site already under construction in Haskell County, Texas.
Powering the Future of AI
Intersect brings significant infrastructure to the table. The company's website states it has $15 billion worth of assets either operating or being built. Its projects represent approximately 10.8 gigawatts of power expected to be online or in development by 2028.
Alphabet emphasised that acquiring these Intersect assets is key to unlocking a reliable and affordable energy supply. This strategy is designed to support the aggressive buildout of data centre infrastructure without transferring the costs to ordinary grid customers. The transaction is anticipated to be finalized by the first half of 2026, setting the stage for Google's next phase of growth powered by clean energy.
This landmark deal underscores a fundamental shift: the future of cutting-edge AI innovation is inextricably linked to the strategic control of energy resources. For Alphabet, securing a dedicated pipeline of clean power is no longer an option but a critical necessity to maintain its competitive edge.
