Prime Highlights
- Alphabet has agreed to acquire clean energy and data center developer Intersect Power, strengthening its control over power generation for growing AI-driven data center needs.
- The deal reflects Alphabet’s strategy to reduce dependence on strained local power grids as demand for energy-intensive AI workloads accelerates.
Key Facts
- The acquisition is valued at $4.75 billion in cash, along with the assumption of Intersect Power’s debt, and is expected to close in the first half of next year, subject to regulatory approvals.
- The transaction includes Intersect Power’s future development projects, while its existing operating assets will be sold to other investors and run as a separate business.
Background
Alphabet, the parent company of Google, has agreed to acquire Intersect Power, a clean energy and data center developer, in a deal valued at $4.75 billion in cash, along with the assumption of the company’s debt. The company announced the acquisition on Monday.
The deal will allow Alphabet to expand its power-generation capacity directly alongside new data centers, helping it avoid reliance on local electricity utilities that are under pressure from rising demand. As artificial intelligence workloads grow, access to reliable energy has become a key requirement for training and operating large AI models.
Alphabet already has a relationship with Intersect Power. Google, along with TPG Rise Climate, led an $800 million strategic funding round in the company in December last year, giving Alphabet a minority stake. That partnership also set a long-term goal of investing up to $20 billion by 2030 to support clean energy and data infrastructure.
The acquisition includes Intersect Power’s future development projects but does not cover its existing operating assets. Those assets will be sold to other investors and managed as a separate business, according to the announcement.
Intersect Power is building large data parks next to renewable energy sources like wind and solar farms, with battery storage support. These campuses will supply power directly to data centers, cutting delays from grid issues. The first data park should start operating by late next year, and the full project will finish by 2027.
Google will be the main user of the new facilities, though Intersect’s campuses are designed as shared industrial parks. This setup allows other companies to place their AI chips and infrastructure at the same sites.
The transaction is expected to close in the first half of next year, subject to regulatory approvals.
