Alphabet To Buy Clean Energy Developer Intersect For $4.75 Billion
Deal underscores Big Tech’s scramble to lock in power and data center capacity as AI workloads strain US electricity grids.
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Alphabet will acquire clean energy and data center infrastructure developer Intersect Power for $4.75 billion in cash plus assumed debt, a deal aimed at securing additional electricity capacity for its growing artificial intelligence and data center operations.
The acquisition is expected to close in the first half of 2026, subject to regulatory approvals.
Alphabet already owns a minority stake in Intersect following a funding round last year.
Under the agreement, the company will take ownership of Intersect’s energy and data center projects under development, while existing operating assets in Texas and California will remain outside the deal and run independently under current investors including TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners.
Alphabet said Intersect will continue as a separate brand led by founder and chief executive Sheldon Kimber and will work closely with Google’s technical infrastructure teams on joint projects, including a co-located data center and power site currently under construction in Haskell County, Texas.
The acquisition comes as technology companies race to expand data center capacity while facing growing constraints in electricity supply. Demand for power has surged as companies build and train large AI models, putting pressure on US power grids and local utilities.
Alphabet said the deal will allow more data center and power generation capacity to come online faster by aligning energy development directly with new data center construction. The company said the transaction will also support its efforts to develop alternative energy technologies and reduce reliance on existing grid infrastructure.
“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership,” said Sundar Pichai, chief executive of Google and Alphabet.
Intersect has about $15 billion worth of assets either operating or under construction. By 2028, projects representing about 10.8 gigawatts of power are expected to be online or in development, according to the company.
Alphabet said it plans to continue working with utilities and energy developers to expand reliable and affordable power supply for data center growth without shifting costs to grid customers. It is also pursuing technologies such as advanced geothermal energy, long duration energy storage, and gas generation paired with carbon capture.
The Intersect deal adds to Alphabet’s recent activity in the energy sector. Earlier this month, utility company NextEra expanded its partnership with Google Cloud to develop a new energy supply for Google’s operations across the US.
