Alphabet, the parent company of Google, has announced that it will acquire Intersect, a sustainable energy developer. Google already owns a minority stake in Intersect van a previously announced financing round, but will buy the company for $4.75 billion in cash, plus the assumption of debt.
The Oberon Solar + Storage project completed by Intersect Power in 2023.
The acquisition will allow Google to more quickly bring more electricity generation capacity online for the development of its data centers.
Included in the transaction are Intersect’s team and several gigawatts of energy and data center projects in development or under construction from its successful existing partnership with Google. Intersect will also explore a range of emerging technologies to increase and diversify energy supplies, while supporting Google’s US data center investments to meet the demand of its cloud customers and users.
Intersect’s activities will remain separate from Alphabet and Google under the Intersect brand. It will work closely with Google’s technical infrastructure team and continue to work on in-development and new, joint projects; this also includes the company’s first announced co-located data center and power plant, under construction in Haskell County, Texas.
Intersect’s existing assets in Texas, and assets and assets under development in California, will not be part of the acquisition. These assets will continue to operate as an independent company, backed by existing investors TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners. Intersect expects a seamless transition and service continuity for customers of these assets.
“Intersect will help us expand capacity, operate more nimbly as we build new power generation in line with the new data center load, and reinvent energy solutions to drive American innovation and leadership,” said Sundar Pichai, CEO of Google and Alphabet.
“Intersect has always been focused on bringing innovation to the industry and we look forward to it accelerate at scale as part of Google,” said Sheldon Kimber, Founder and CEO of Intersect. “Modern infrastructure is the linchpin of America’s competitiveness in AI. We share Google’s belief that energy innovation and community investment are the pillars of what should come next.”
The deal is subject to customary closing conditions and is expected to close in the first half of 2026.
News item from Google
