Alphabet, the owner of Google, has reached an agreement to acquire Intersect Power, a company specializing in the construction of data centers and clean energy facilities, for $4.75 billion in cash. The acquisition, announced on Monday, also involves Alphabet assuming the company’s debts. This move will enable Alphabet to expand its energy production capabilities alongside constructing new data centers, thereby reducing reliance on local power grids that often struggle to meet increasing demand from AI companies.
Providing power for data centers has become critically important for training AI models. This acquisition positions Alphabet to meet these needs more efficiently.
Previously, Alphabet owned a minority stake in Intersect Power following a strategic funding round led by Google and TPG Rise Climate in December 2024, raising $800 million. This partnership set a goal to attract a total of $20 billion in investments by 2030.
The deal includes future projects of Intersect Power but does not affect the company’s existing assets. These will be purchased by other investors and managed as a separate entity. The new data parks, located near wind, solar, and battery power plants, are expected to start operations in late 2026 and will be fully completed by 2027. The deal is expected to close in the first half of 2026.
Google is projected to be the main user of these new facilities. However, Intersect’s campuses are designed as industrial parks, capable of hosting AI chips from other companies alongside Google’s developments.
