Alphabet has agreed to acquire data centre and clean energy developer Intersect Power in a deal valued at about US$4.75 billion in cash, excluding debt, as the Google parent steps up efforts to secure reliable power for its fast-growing artificial intelligence and cloud operations.
The transaction gives Alphabet direct access to Intersect Power’s portfolio of utility-scale solar, wind and energy storage projects, many of which are co-located with or designed to support large data centre developments. By pairing generation capacity with data infrastructure, Alphabet aims to reduce its exposure to congested electricity grids and long interconnection delays that have increasingly constrained data centre expansion in the United States.
Intersect Power has built a reputation for developing large clean-energy projects near major load centres, positioning itself as a strategic partner for hyperscale technology companies facing surging electricity demand. The company’s model of integrating power generation, storage and data centre development aligns closely with Alphabet’s ambition to run its operations on carbon-free energy around the clock.
Alphabet’s data centre energy needs have grown sharply with the expansion of AI training and inference workloads, which require constant, high-density power supply. Grid bottlenecks, permitting delays and ageing transmission infrastructure have emerged as major risks for Big Tech firms racing to deploy new compute capacity. Owning energy assets directly offers Alphabet greater control over cost, timing and sustainability.
The acquisition also strengthens Alphabet’s long-term clean energy strategy. The company has already committed to operating entirely on carbon-free energy by 2030 and has been one of the world’s largest corporate buyers of renewable power through long-term power purchase agreements. Bringing Intersect Power in-house allows Alphabet to move beyond contracts and into direct ownership of generation and storage assets.
Industry analysts view the deal as part of a broader shift among technology giants toward vertical integration in energy, as competition for power intensifies alongside AI investment. Similar strategies are being explored across the sector as companies seek to insulate critical infrastructure from grid constraints and regulatory uncertainty.
The deal is expected to close subject to regulatory approvals and customary conditions. Once completed, Intersect Power will operate within Alphabet’s broader infrastructure and sustainability portfolio, supporting the company’s data centre build-out and long-term energy resilience.
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