Google Acquires Intersect Power for $4.75 Billion
Alphabet has agreed to purchase Intersect Power, a developer of data centers and clean energy infrastructure, in a transaction valued at $4.75 billion in cash plus assumed debt. This acquisition targets the escalating power demands of artificial intelligence operations across Google’s cloud computing facilities. Intersect Power specializes in building large-scale data centers paired with renewable energy sources, including solar farms and battery storage systems. The company had previously collaborated with Google on multiple projects and received investment from the tech giant in a funding round exceeding $800 million last year.
Data center electricity consumption for AI training and inference has surged, straining United States power grids. Major technology companies face delays in securing sufficient energy from traditional utilities. Intersect Power operates facilities designed to provide dedicated power supplies, bypassing grid bottlenecks through co-located generation assets. This setup enables faster deployment of hyperscale computing infrastructure required for advanced AI models.
The deal includes Intersect’s portfolio of operational and under-development projects totaling several gigawatts of capacity. These assets incorporate solar photovoltaic panels, high-voltage transmission connections, and large-scale lithium-ion battery systems for energy stabilization. Google aims to leverage this infrastructure to support expansion of its Google Cloud platform and internal AI research initiatives. Competitors such as Microsoft and Amazon have pursued similar strategies, investing in nuclear, geothermal, and other power sources to meet projected demand growth.
Intersect Power maintains headquarters in San Francisco and focuses exclusively on United States-based developments. The acquisition excludes international operations and aligns with domestic priorities for critical technology infrastructure. Regulatory approval processes remain pending, with closure anticipated in the coming months. This move positions Alphabet to secure dedicated energy resources amid industry-wide competition for reliable power supplies essential to AI advancement.
Tech sector analysts note increasing consolidation between hyperscalers and energy developers. Power availability has emerged as a primary constraint on AI scaling, surpassing even semiconductor supply in some projections. Google’s purchase reflects efforts to internalize energy procurement and reduce dependency on public grids facing capacity limits. Intersect’s integrated model combines real estate development, power generation, and data center construction under single ownership.
