Alphabet, the parent company of Google, has announced a landmark acquisition of Intersect Power, a leading developer of data centers and clean energy projects, in a deal valued at $4.75 billion in cash, along with the assumption of the company’s debt.
This acquisition is a strategic move to reinforce Google’s energy security for its rapidly expanding global network of data centers, which are increasingly critical for advanced AI model training.
By securing direct access to renewable power generation, Alphabet aims to reduce its reliance on local utilities, many of which are struggling to meet the surging electricity demands of AI and cloud computing workloads.
The deal builds on Alphabet’s prior investment in Intersect Power, made during an $800 million strategic funding round last December led jointly with TPG Rise Climate.
That earlier partnership granted Alphabet a minority stake in Intersect and laid the groundwork for an ambitious $20 billion total investment target by 2030 in sustainable energy infrastructure.
Under the terms of the agreement, the acquisition covers Intersect’s future development projects, while its existing operational assets will be acquired and operated independently by other investors.
The transaction is expected to close in the first half of next year, positioning Alphabet to take full advantage of emerging renewable energy technologies.
Intersect Power’s upcoming “data parks,” strategically located alongside wind, solar, and battery storage assets, are designed to begin operations by late 2026, with full completion projected by 2027.
Google will serve as the primary occupant of these facilities; however, the campuses are engineered to accommodate additional companies’ AI infrastructure, effectively creating industrial-scale AI energy hubs.
This acquisition signals a major convergence of technology and sustainable energy. By integrating renewable power generation directly into its data center strategy, Alphabet is ensuring uninterrupted, high-capacity energy for its AI initiatives while setting a benchmark for environmentally sustainable computing.
The deal underscores the growing imperative for tech giants to control both computational infrastructure and energy supply in an era defined by AI, cloud computing, and green technology innovation
