Alphabet has agreed to acquire clean energy and data center developer Intersect Power for $4.75 billion in cash, plus the assumption of its debt, as the company moves to secure long-term power generation for its expanding data center footprint.
Deal Structure And Scope
Alphabet announced Monday that it will buy Intersect Power in a transaction aimed at pairing new data centers directly with large-scale power generation.
The acquisition includes Intersect Power’s future development pipeline but excludes its existing operating assets. Those assets will be acquired by other investors and run as a separate business, Alphabet said.
The deal is expected to close in the first half of next year.
Reducing Reliance On Local Utilities
Alphabet said the purchase will allow it to expand power generation alongside new data centers without relying solely on local utilities, which are under pressure as AI-driven computing demand accelerates.
Access to reliable electricity has become a key constraint for AI development, as large-scale model training and inference require significant and continuous power. By owning development projects that combine data centers with generation assets, Alphabet can better control capacity and timelines.
Prior Investment And Long-Term Plans
Alphabet already held a minority stake in Intersect Power following an $800 million strategic funding round announced last December. That round was led by Google and TPG Rise Climate.
At the time of that investment, the partners said they were targeting up to $20 billion in total investment by 2030 to support large-scale clean energy and data infrastructure development.
Data Parks And Timeline
Intersect Power’s future projects include what the company describes as data parks, which place data center campuses directly adjacent to wind, solar, and battery storage facilities.
Google previously said these sites are expected to begin operating late next year, with full completion targeted for 2027.
Use By Google And Other Companies
Google is expected to be the primary user of the data center capacity developed under the acquisition. However, Alphabet said Intersect’s campuses are designed as industrial-style parks that can also host AI hardware operated by other companies, allowing multiple tenants to colocate alongside Google’s infrastructure.
The transaction reflects Alphabet’s broader effort to align energy supply, data center expansion, and AI development under a single ownership structure.
Featured image credits: Flickr
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