Alphabet buys Intersect to power new AI data centers

Google's parent company, Alphabet, announced its intention to acquire Intersect Power, a developer of data centers and clean energy facilities. The purchase price is estimated at $4.75 billion in cash, including debt.

What is known

The deal will allow Alphabet to develop its own energy infrastructure alongside the construction of new data centers, not relying on local power grids. Access to energy has become a key issue for companies working with artificial intelligence.

Alphabet already had a minority stake in Intersect Power after an $800 million investment round in December 2024, led by Google and TPG Rise Climate. As part of the partnership, up to $20 billion in investments was planned by 2030.

The deal covers future Intersect projects but does not relate to existing facilities – they will be bought out by other investors and managed separately. According to preliminary plans, new data centers near wind, solar, and storage power plants are set to begin operations at the end of 2026.

Intersect's infrastructure also allows for the hosting of other companies' equipment. The deal completion is expected in the first half of 2026.

Source: Reuters