Alphabet,the parent company of Google,has announced a definitive agreement to acquire the US-based clean energy developer Intersect Power in a$4.75 billion deal involving cash and the assumption of debt.The acquisition is set to be completed in the first half of 2026 and is intended to address the surging power demand of AI data centres by securing control over clean energy assets,thereby strengthening Alphabet’s competitive edge in the global cloud and AI sectors.
Under the agreement,Alphabet will gain access to Intersect’s core team,projects under construction,and data centre infrastructure.Intersect will continue to operate independently under the leadership of its current chief executive,Sheldon Kimber,while deepening its collaboration with Alphabet’s technical teams.Notably,Intersect’s existing operating assets in Texas and certain assets in California are excluded from the acquisition;these will be supported by existing investors,while Alphabet will focus on projects that directly serve its data centre and cloud operations.
Alphabet’s chief executive,Sundar Pichai,indicated that the partnership would help to expand capacity,enable the synchronised construction of power generation facilities and new data centre loads,and reshape energy solutions.Following the acquisition,Intersect’s clean energy assets will directly power Alphabet’s data centres,reducing reliance on external suppliers and advancing the company’s 2030 goals of 24/7 carbon-free energy and net-zero operations.Alphabet achieved 66%carbon-free energy use in 2024,with data centre emissions down 12%year on year.
Industry analysts have noted that acquiring Intersect will significantly shorten Alphabet’s data centre construction cycle and lower operational costs,granting it speed and cost advantages in the race for computing power against rivals such as OpenAI.As the deal progresses,the model of tech companies owning power generation to address AI energy challenges could reshape the competitive landscape of the global energy and technology industries.
