Alphabet buys Intersect for $4.75 billion to solve AI data centers' power crunch
17 Sources
[1]
Alphabet to buy Intersect Power to bypass energy grid bottlenecks | TechCrunch
Google parent Alphabet has agreed to buy Intersect Power, a data center and clean energy developer, for $4.75 billion in cash plus the assumption of the company's debt. The acquisition, which was announced Monday, will help Alphabet expand its power generation capacity alongside new data centers
[2]
Google's parent buys data center energy specialist Intersect for $4.75 billion to help power AI
MOUNTAIN VIEW, Calif. (AP) -- Google's corporate parent on Monday announced an agreement to buy data center energy specialist Intersect for $4.75 billion as part of its effort to secure the vast amounts of electricity needed to power artificial intelligence technology. Alphabet, which depends on
[3]
Google Buys Data Center Company for $4.75 Billion
Google has agreed to buy Intersect, a data center and energy developer, for $4.75 billion, the tech giant said on Monday, as it pushes to build out its infrastructure for artificial intelligence. The all-cash deal is set to help Google bolster the supply of power to its data centers, the giant
[4]
Google looks to buy its way out of AI power crunch with $4.75B Intersect acquisition
Google parent Alphabet's $4.75 billion deal to acquire Intersect, a clean energy developer and data center infrastructure company, represents a major exit for a company that was headquartered for many years in the Pacific Northwest. More broadly for the industry, the deal adds a new twist to the
[5]
Alphabet is acquiring a data center company to ramp up its AI infrastructure
Google's parent company Alphabet has announced an acquisition of Intersect, a "data center and energy infrastructure" company that aims to provide additional support for building out its capacity for AI. The deal sees Alphabet paying $4.75 billion in cash for Intersect alongside the assumption of
[6]
Google parent Alphabet buys data center and energy firm in massive deal
Why it matters: Tech giants are aggressively hunting for power to serve energy hungry data centers that train AI models and handle queries. Driving the news: The transaction includes "multiple gigawatts of energy and data center projects in development, or under construction" from Intersect's
[7]
Alphabet acquires Intersect as global data centre deals soar to $61bn
Sundar Pichai at the World Economic Forum Annual Meeting 2020 in Davos-Klosters, Switzerland. Image: World Economic Forum Annual Meeting/ Flicker (CC BY-NC-SA 2.0) Companies are seeking out data centre deals to feed the unprecedented energy requirements needed for AI. Alphabet caps the year off
[8]
Alphabet buys data center energy specialist Intersect for $4.75 billion to help power AI
Alphabet, which depends on Google's search engine and other online services for most of its revenue, is buying out Intersect in its entirety after purchasing a stake in the San Francisco-based startup a year ago. Intersect had previously raised $2.1 billion from Google and other early
[9]
Alphabet acquires Intersect Power for $4.75B to solve AI energy gap
Alphabet, Google's parent company, has agreed to acquire Intersect Power, a data center and clean energy developer, for $4.75 billion in cash plus assumption of the company's debt. Announced on Monday, the deal enables expansion of power-generation capacity for new data centers by bypassing local
[10]
Google's parent buys data center energy specialist Intersect for $4.75 billion to help power AI
MOUNTAIN VIEW, Calif. (AP) -- Google's corporate parent on Monday announced an agreement to buy data center energy specialist Intersect for $4.75 billion as part of its effort to secure the vast amounts of electricity needed to power artificial intelligence technology. Alphabet, which depends on
[11]
Google Wants More Energy to Fuel AI. It's Buying This Company to Help Power Its Data Centers.
CEO Sundar Pichai said the purchase will boost the firm's ability to meet the power needs of AI data centers. Google parent Alphabet just struck another big energy deal aimed at growing its AI data center footprint. Alphabet (GOOGL) said Monday it's buying energy infrastructure provider Intersect
[12]
Google share price jumps over 60 per cent this year as parent Alphabet buys data center energy specialist Intersect
Alphabet intends to allow Intersect to operate independently while continuing its efforts to secure the energy sources needed for the sprawling data centers being built to power the AI services rolling out from Google and rivals such as OpenAI. Google's corporate parent Alphabet today announced an
[13]
Why Alphabet Just Paid $4.75 Billion for Intersect -- and What It Means for the Future of Artificial Intelligence (AI) | The Motley Fool
Then on Dec. 22, Alphabet announced a definitive agreement to acquire Intersect, a provider of data center and energy infrastructure solutions, for $4.75 billion. As Alphabet continues to push the frontiers of all things artificial intelligence (AI), investors may be wondering how the Intersect
[14]
Alphabet to buy clean energy developer Intersect in $4.75 billion deal amid AI push
Big Tech has ramped up investments in energy firms as U.S. power grids struggle to keep pace with the soaring electricity demand of generative AI amid an intensifying race to capitalize on the booming technology. Alphabet said on Monday it would buy clean energy developer Intersect for $4.75
[15]
Alphabet Acquiring Data Center Firm Intersect | PYMNTS.com
By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The $4.75 billion deal is designed to allow more artificial intelligence (AI)
[16]
Alphabet to buy clean energy developer Intersect in $4.75 billion deal amid AI push
Dec 22 (Reuters) - Alphabet said on Monday it would buy clean energy developer Intersect for $4.75 billion in cash, plus assumed debt, as tech giants spend billions to expand the computing and power capacity necessary for developing artificial intelligence. Big Tech has ramped up investments in
[17]
Alphabet to Buy Intersect for $4.75 Billion as AI-Investment Plans Grow -- Update
Alphabet agreed to buy Intersect for $4.75 billion, a deal the Google parent said would help address the near insatiable demand for energy to power the expansion of artificial intelligence. The company said Monday it would pay in all cash, plus debt, for Intersect's data-center projects that are
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Google's parent company Alphabet announced a $4.75 billion acquisition of Intersect, a clean energy developer and data center company, to bypass energy grid bottlenecks that slow AI expansion. The deal lets Alphabet build power generation alongside data centers, avoiding lengthy grid connection delays that have stalled the industry's AI ambitions.
Alphabet Intersect Acquisition Tackles AI Power Shortage
Google's parent company Alphabet has agreed to acquire Intersect Power, a data center and clean energy developer, for $4.75 billion in cash plus the assumption of debt
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. The deal, announced Monday, addresses a critical bottleneck facing the tech industry: securing electricity supply for energy-intensive AI operations. By bringing Intersect's capabilities in-house, Alphabet aims to bypass energy grid bottlenecks that have left cloud providers waiting months or years to connect new facilities to local utilities struggling with surging demand4
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Source: ET
The transaction represents a strategic shift in how tech giants compete in the AI race. Alphabet previously held a minority stake in Intersect after Google and TPG Rise Climate led an $800 million funding round in December 2024, with that partnership targeting $20 billion in total investment by 2030
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. Intersect had raised $2.1 billion from Google and other early investors before this buyout2
.Expanding AI Infrastructure Without Grid Dependency
Intersect's model centers on building data parks directly adjacent to solar power, battery storage, and wind facilities. This approach allows power generation capacity to scale in lockstep with data center load, eliminating the grid connection delays that have hampered AI data centers across the industry
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. "AI today is stuck behind one of the slowest, oldest industries in the country: electric power," wrote Intersect founder and CEO Sheldon Kimber in a blog post announcing the deal. "The country has racks full of GPUs that can't be energized because there isn't enough electricity for them"4
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Source: PYMNTS
The acquisition includes Intersect's future development projects and multiple gigawatts of computing capacity, but excludes existing operations in Texas and California, which will be carved out and managed as a separate company by other investors
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. Google will be the primary user of these new facilities, though Intersect's campuses are designed as industrial parks that can host other companies' AI hardware alongside Google's chips1
.How This Differs From Competitors' Energy Strategies
While Microsoft and Amazon are also racing to secure electricity supply for AI operations, neither has acquired a power developer outright. Microsoft has signed large renewable deals and is restarting the Three Mile Island nuclear plant, while Amazon has pursued a long-term agreement for nuclear power from Pennsylvania's Susquehanna plant and is investing in small modular reactor technology
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. Alphabet's direct acquisition strategy represents a more integrated approach to solving the AI power crunch.The deal will particularly accelerate expanding AI infrastructure in Haskell, Texas, where Google is investing $40 billion through 2027
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. Intersect's new data parks are expected to become operational late next year and reach full completion by 2027.Related Stories
Addressing Rising Electricity Costs and Community Concerns
The power-hungry nature of AI data centers has sparked backlash in communities where residents have seen steadily rising electricity bills, interpreting them as evidence they're helping foot the bill for a technology boom that could still go bust
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. Google specifically pointed to a goal of building data centers "without passing on costs to grid customers," acknowledging this ongoing problem facing US residents5
.Founded in 2016 and previously headquartered in Beaverton, Oregon, before moving to San Francisco earlier this year, Intersect has grown into a major player in utility-scale renewable energy with more than 360 employees
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. Sheldon Kimber will remain as CEO, with Intersect continuing to operate under its own brand and partnering closely with Google's in-house infrastructure team5
.Market Impact and Future Implications
Google's inroads with AI have helped increase Alphabet's stock price by more than 60% so far this year, generating an additional $1.4 trillion in shareholder wealth
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. The acquisition marks a rare outright purchase of a data center or energy company by a major tech firm. For years, Google faced regulatory scrutiny over potential monopolies in areas like internet search, which appeared to dampen its mergers-and-acquisitions activity, though recent antitrust penalties have been relatively light3
."Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership," said Sundar Pichai, CEO of Google and Alphabet
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. The transaction is expected to close in the first half of 2026. This move signals that securing reliable energy infrastructure has become as critical as developing AI models themselves, potentially setting a precedent for how tech companies address power constraints in their race to dominate artificial intelligence.
Source: Silicon Republic
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