Alphabet is set to acquire Intersect Power for $4.75 billion, including debt, to bolster its data centre energy infrastructure. This move aims to scale up Alphabet's capacity to meet the increasing demands of AI and cloud computing. Intersect will operate independently under CEO Sheldon Kimber, partnering with Google's infrastructure team.
The acquisition includes Intersect's energy and data centre projects currently in development, but excludes existing assets in Texas and California. Intersect has $15 billion in infrastructure operating or under construction and plans to have 10.8 GW in construction or operating by late 2028. Alphabet intends to leverage AI to accelerate grid connections for new power plants and explore emerging energy technologies.
This deal reflects the growing trend of tech companies investing in energy solutions to support the power-intensive demands of AI and data centres. Alphabet anticipates the acquisition will enhance its capacity and agility in building new power generation facilities. The transaction is expected to close in the first half of 2026.
