Alphabet Inc. is deepening its push into data center infrastructure by acquiring Intersect Power LLC, a clean energy and datacenter developer, for $4.75 billion in cash plus assumed debt. The deal represents one of the tech giant's largest acquisitions as it races to secure power generation capacity for its artificial intelligence (AI) operations amid surging electricity demand across the United States.

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The acquisition, announced Monday, will give Google access to multiple gigawatts of energy and datacenter projects either in development or under construction. Alphabet said the transaction will enable faster deployment of both datacenter and power generation capacity as aging U.S. grids struggle to meet decades-high electricity demand driven by AI, new manufacturing facilities, and broader economic electrification.

Google already held a minority stake in Intersect from a funding round announced last December. Under that partnership with TPG Rise Climate, Intersect aimed to develop gigawatts of data center capacity across the U.S., targeting $20 billion in renewable power infrastructure investment by the end of the decade.

The deal is expected to close in the first half of 2026, subject to customary closing conditions. Intersect's existing operating assets in Texas and its operating and in-development assets in California are excluded from the transaction and will continue as an independent company backed by investors TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners.

Transaction Structure and Operational Impact

Intersect will maintain separate operations from Alphabet and Google under its own brand, led by founder and CEO Sheldon Kimber. The acquired entity includes Intersect's team and multiple gigawatts of energy and datacenter projects stemming from its existing partnership with Google.

"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 U.S. innovation and leadership," said Sundar Pichai, CEO of Google and Alphabet, in a statement. "We look forward to welcoming Sheldon and the Intersect team."

Intersect will work closely with Google's technical infrastructure team on joint projects, including the companies' first announced co-located data center and power site currently under construction in Haskell County, Texas. The company will also explore emerging technologies to increase and diversify energy supply while supporting Google's U.S. datacenter investments.

Strategic Rationale and Energy Innovation

Alphabet said the acquisition advances its commitment to unlocking reliable, affordable energy supply that enables datacenter infrastructure buildout without passing costs to grid customers. The company emphasized partnerships across the energy sector to responsibly increase supply while accelerating commercialization of advanced technologies including geothermal, long-duration energy storage, and gas with carbon capture.

Kimber stated that "modern infrastructure is the linchpin of American competitiveness in AI," adding that Intersect "has always been focused on bringing innovation to the industry and we look forward to accelerating at scale as part of Google."

Background on Google-Intersect Partnership

Google's initial investment in Intersect came through an equity stake in December 2024, when the energy developer raised more than $800 million in a corporate fundraising round led by TPG Rise Climate, with participation from Climate Adaptive Infrastructure and Greenbelt Capital Partners.

That partnership aimed to co-locate data center load with clean power generation across multiple U.S. locations. The model was designed to ease grid burden and improve reliability by building data centers alongside renewable energy plants, battery storage, and transmission infrastructure that connect to the same substation. Google committed to paying 100% of grid upgrade charges related to these projects.

Intersect's first project with Google from that partnership was slated to begin operations in 2026 and complete by 2027.

Alphabet Acquires Google's Datacenter Partner...