Google is making a massive move to expand its data center capacity in support of artificial intelligence (AI) development. Parent company Alphabet Inc. has agreed to fully acquire Intersect Power LLC, a key energy supplier for data centers, in an all-cash and debt-assumption deal worth $4.75 billion.
The acquisition aims to secure additional power supply for Google’s data centers, addressing the surging electricity demand driven by AI, new manufacturing facilities, and broader electrification—a challenge for the aging U.S. power grid. Alphabet first partnered with Intersect a year ago by investing in an $800 million funding round, collaborating on large-scale energy plants adjacent to data center campuses.
Under the agreement announced on Monday, Intersect—a provider of data center and energy infrastructure solutions—will continue operating as an independent brand post-acquisition but will work closely with Google’s technical infrastructure team. The deal is expected to close in the first half of 2026.
Alphabet CEO Sundar Pichai stated, "Intersect will help us scale capacity, operate more flexibly in synchronizing new power generation with data center loads, and reimagine energy solutions to drive U.S. innovation and leadership."
**Acquisition Covers In-Development Projects, Excludes Some Assets** According to Alphabet’s announcement, the deal includes Intersect’s team and multiple gigawatt-scale energy and data center projects under development or construction, stemming from their existing partnership. Post-acquisition, Intersect will remain led by founder and CEO Sheldon Kimber while advancing joint projects, including their first publicly announced co-located data center and power station in Haskell County, Texas.
Notably, Intersect’s operational assets in Texas and operational/under-construction assets in California are excluded from the deal. These will continue as a separate entity backed by current investors TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners.
**Commitment to U.S. Energy Innovation** Alphabet emphasized that the acquisition will accelerate the deployment of data centers and power generation while fostering energy innovation. Intersect will explore emerging technologies to diversify energy supply, supporting Google’s U.S. data center investments and cloud customer needs.
Kimber remarked, "Intersect has focused on industry innovation, and we look forward to accelerating this as part of Google. Modern infrastructure is critical to U.S. competitiveness in AI. We share Google’s belief that energy innovation and community investment are pillars of progress."
Alphabet reiterated its commitment to partnering with utilities and energy developers to unlock reliable, affordable power for data center infrastructure without passing costs to grid customers. The company also aims to advance next-gen technologies like geothermal energy, long-duration storage, and natural gas with carbon capture.
**Strategic Partnership Established in 2023** Last December, Google took a minority stake in Intersect via an $800 million+ funding round. Their collaboration targets multi-gigawatt data center capacity nationwide, including $20 billion in renewable energy infrastructure by 2030.
The partnership employs an innovative "power-first" development model, co-locating data centers with high-capacity, low-cost clean energy and battery storage to maximize renewables while easing grid strain. Their first joint clean energy project is slated for partial operation in 2026, with full completion by 2027.
Comments