Alphabet, the parent company of Google, has agreed to buy Intersect, a U.S. clean energy developer, in a deal valued at $4.75 billion in cash plus assumed debt. The transaction was announced in December 2025 and is expected to close in the first half of 2026.
The acquisition helps Alphabet gain more strength for its growing data center operations. It also supports the growth of its artificial intelligence (AI) services.
The deal includes Intersect’s team, energy projects under development, and data center infrastructure. Intersect will keep running independently with its current leaders. It will also collaborate closely with Alphabet’s technical teams.
Why AI Growth Is Forcing Alphabet to Secure Its Own Power
Alphabet runs one of the world’s largest cloud and AI businesses. These services need huge amounts of electricity. AI applications, such as large language models and cloud computing tools, require powerful data centers.
The electricity demand from these centers is growing fast. Many power grids struggle to keep up with this demand. That makes reliable and clean power especially important for companies like Alphabet.
By buying Intersect, Alphabet can gain more control over the supply of electricity for its data centers. The clean energy projects Intersect develops include solar power, battery storage, and other generation capacity. Owning these assets lets Alphabet bring new power online faster. It also reduces reliance on outside energy suppliers.
Alphabet has already worked with Intersect. Google took a minority stake in Intersect in 2024 and partnered on several projects before the acquisition. The full purchase builds on that existing relationship.
Google CEO Sundar Pichai noted that this deal with Intersect will:
“help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership.”
Intersect Power: Building Energy for the AI Era
Intersect Power was founded in 2016 and grew into a significant player in the clean energy sector. The company builds and develops large solar projects, battery storage systems, and data centers. These projects combine power generation with computing facilities. Intersect has offices in several U.S. states and works with technology and infrastructure partners.
By late 2025, Intersect will manage over 10.8 gigawatts (GW) of energy projects. These projects will be operating, under construction, or in development by 2028. To put that in context, this is more than 20x the electricity production of the Hoover Dam.
Some of Intersect’s clean energy work includes building solar plants in California and battery storage facilities in Texas. These projects are designed to serve both utility grids and data centers with cleaner power sources
Before the acquisition, Intersect had raised more than $2 billion in equity and project financing from investors. It also had existing partnerships with Google and other technology firms.
What Alphabet Is Getting in the Deal: Inside the $4.75B Acquisition
Alphabet is paying $4.75 billion in cash and will also assume Intersect’s existing debt. The acquisition includes the following key elements:
- The Intersect leadership team and staff.
- A portfolio of energy projects in development or under construction.
- Joint infrastructure projects with Google.
- Access to emerging technologies in energy generation and storage.
Not every Intersect asset will transfer to Alphabet. Some facilities and projects in Texas and California will stay independent. They will continue to be backed by current investors. Alphabet is focusing on projects that directly support its data center and cloud operations.
Intersect will remain a separate brand and company after the deal closes, led by its current CEO, Sheldon Kimber. The company will continue its broader work while collaborating with Alphabet on shared energy and data center goals.
The Role of Clean Energy and AI
Large data centers consumed 4% of U.S. electricity in 2024, with hyperscale demand hitting 61.8 GW in 2025 (up 22% YoY) amid AI-driven growth to 106-123 GW by 2035.
Alphabet’s facilities used 30.8 TWh in 2024, doubling from 2020 and 95.8% of its total power, for AI model training and cloud services. U.S. grids face record demand in 2025-2026, with data centers projected to double to 9% of electricity by 2030.
Acquiring Intersect Power advances Alphabet’s 24/7 carbon-free by 2030 and net-zero goals. Intersect’s 10.8+ GW pipeline of solar (e.g., 828 MWp TX Lumina) and battery storage (multi-GWh) enables a direct clean supply. This reduces data center emissions intensity, building on Alphabet’s 12% Scope 2 cut in 2024 despite surging demand.
Alphabet aims for net-zero emissions in its operations and value chain by 2030. It also targets 24/7 carbon-free energy for all data centers and offices by the same year. Additionally, it seeks to enable 1 gigaton of annual emissions reductions for users and partners.
In 2024, it secured over 8 GW of clean energy. It achieved 66% carbon-free energy (CFE), matching 80% hourly CFE in 9/20 grids. Despite a 27% rise in electricity use, it cut data center emissions by 12%, bringing them down to 3.1 MtCO2e. Its portfolio includes power purchase agreements (PPAs) and investments in wind, solar, geothermal, and storage. It also has supplier mandates for 100% renewables by 2029.
Intersect plans to explore more technologies. Along with solar and storage, it will look into long-duration storage and advanced generation solutions. This will help diversify the energy supply. These technologies could further support data center growth with more reliable and cleaner power.
Big Tech’s Race to Control Energy Supply
Alphabet is not alone in addressing power needs for AI growth. Other big technology companies are also investing in clean energy, grid modernization, and direct power supply.
Microsoft, for example, has expanded renewable energy contracts and supported nuclear and other low-carbon projects. Amazon has pursued long-term agreements with nuclear power plants and investments in small modular reactor research.
The Intersect acquisition reflects a trend in which cloud and AI companies look beyond simple power purchase agreements. Some companies are adding energy development. This helps them get electricity faster and cut down on grid capacity issues.
Energy infrastructure has become a strategic asset for firms with large data center footprints. Owning or controlling generation and storage helps companies plan capacity better. This way, they can avoid grid connection delays and may reduce long-term costs.
What the Deal Signals for AI and Energy Markets
Alphabet expects the Intersect deal to close in early 2026, pending regulatory approval and standard closing conditions. The acquisition will give Alphabet direct access to clean energy projects. It will also provide talent to support data center expansion.
The transaction also sends a signal about how technology firms are adapting to the challenges of powering AI. Data centers are critical infrastructure for cloud services, search, video, and generative AI. Securing reliable, scalable, and cleaner energy sources is now central to growth strategies for Alphabet and its peers.