Alphabet to acquire clean energy developer Intersect in $4.75 Bn Deal

Alphabet has announced plans to acquire clean energy developer Intersect in a $4.75 billion all-cash deal, including assumed debt, as the Google parent steps up investments to secure power capacity for its expanding artificial intelligence and data centre operations.

The acquisition comes amid a surge in electricity demand driven by generative AI and large-scale computing infrastructure, prompting major technology companies to invest heavily in energy assets. US power grids are increasingly under pressure as data centres scale rapidly, pushing Big Tech firms to seek direct access to reliable and sustainable energy sources.

Under the agreement, Alphabet will take ownership of Intersect’s clean energy and data centre projects that are currently under development or construction. The company said Intersect has approximately $15 billion worth of assets that are either operational or being built.

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By 2028, projects representing around 10.8 gigawatts of power capacity are expected to be online or in various stages of development. This level of output far exceeds the electricity generated by major legacy infrastructure projects, underscoring the scale of energy required to support AI-driven computing growth.

The deal builds on Alphabet’s growing footprint in the energy sector. Earlier this month, Google Cloud expanded its partnership with utility major NextEra to develop additional power capacity for Google’s US operations, reflecting a broader strategy to align data centre expansion with new energy supply.

Alphabet was already an investor in Intersect, alongside TPG Rise Climate, having participated in a funding round exceeding $800 million late last year. That investment included plans to develop industrial parks combining large-scale data centre capacity with adjacent clean energy facilities.

Following the transaction, Intersect will continue to operate as a separate entity. Alphabet said Intersect’s existing operational assets in Texas, as well as its operating and under-development projects in California, will remain outside the acquisition and continue under independent ownership supported by current investors.

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Some of Intersect’s Texas assets include energy storage systems built alongside Google data centre campuses, designed to stabilise supply and improve efficiency. The company will also continue exploring emerging energy technologies to diversify power generation while supporting Alphabet’s long-term data centre strategy in the US.