Alphabet to Acquire Intersect for $4.75B to Expand Energy Supply for AI Infrastructure

Alphabet has agreed to acquire Intersect PowerDealroom has a profile for this one. Try Dealroom → for $4.75 billion in cash, plus the assumption of debt, in a deal aimed at securing reliable energy supply for Google’s rapidly expanding data centre footprint.

The acquisition follows Google’s minority investment in Intersect in late 2024, part of a funding round led by Google and TPG Rise ClimateDealroom has a profile for this one. Try Dealroom →, which also established a long-term partnership to co-locate data centres with clean power generation. The transaction is expected to close in the first half of 2026.

Founded in 2016 by CEO Sheldon KimberDealroom has a profile for this one. Try Dealroom →, Intersect is a US-based clean energy developer focused on utility-scale solar, wind and battery storage projects. The company has built a portfolio of large renewable assets designed to serve energy-intensive customers, particularly hyperscale data centres, and reports around $15 billion of projects in operation or under construction across the US.

Intersect’s relationship with Google has evolved from customer to strategic partner. In 2024, the two companies announced plans to jointly develop large, co-located power and data centre campuses, starting with a site in Haskell County, Texas.

The model was designed to bypass grid bottlenecks by pairing new generation directly with computing load, a growing constraint as AI-driven demand accelerates faster than grid upgrades.

Under the acquisition, Alphabet will take control of Intersect’s development platform, in-progress projects contracted by Google, and the core operating team.

Intersect will continue to operate under its own brand, with Kimber remaining CEO. Assets in Texas and California that serve other customers, along with certain grid-connected projects, will remain outside the deal and continue to be backed by existing investors.

The transaction reflects a broader shift among large technology companies toward deeper vertical integration of energy and infrastructure, as access to power becomes a central constraint in scaling artificial intelligence.

Alphabet, alongside Meta, Microsoft and Amazon, has outlined plans to invest tens of billions of dollars in new data centre capacity while also expanding energy supply, as ageing grids and permitting delays struggle to keep pace with AI-driven demand.

Sources:
Alphabet
Intersect Power
TechCrunch
The Wall Street Journal
Reuters
Bloomberg
The Financial Times

J.V.