Alphabet is making a major infrastructure bet to keep pace with the expanding demands of its cloud and AI services. The Google parent has agreed to acquire Intersect Power, a key data center and energy partner, in a deal valued at $4.75 billion in cash, along with the assumption of Intersect’s existing debt. The transaction is expected to close in the first half of 2026, subject to regulatory approvals and standard closing conditions. With AI models and cloud platforms consuming unprecedented amounts of electricity, Alphabet is joining a growing list of tech giants trying to secure more direct control over the power that fuels their infrastructure.
Intersect Power is a US-based developer focused on building large-scale energy projects that are closely tied to data center demand. Rather than relying solely on traditional grid connections, the company specializes in a power-first development approach, in which energy generation and computing infrastructure are planned together from the outset. Most importantly, Alphabet has worked with Intersect for several years and already holds a minority stake in the company.
The deal gives Alphabet access to a portfolio of data center–linked energy projects that are either under construction or in advanced development stages across the United States. These projects are designed to support the rapid deployment of new data centers, particularly as Google Cloud and internal AI operations scale at an accelerated pace. One of the most visible examples is a co-located data center and power facility in Haskell County, Texas, where computing capacity and energy generation are being developed side by side to reduce grid congestion and speed up timelines.
However, not all of Intersect’s assets are included in the transaction. Certain operating facilities in Texas, along with operating and in-development projects in California, will remain outside Alphabet’s ownership. Those assets will continue to be held by Intersect’s existing investors, which include infrastructure and climate-focused firms like TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners.
It is also important to note that the Sundar Pichai-led company plans to keep Intersect operating as a standalone business following the acquisition. The company will retain its brand and leadership, including chief executive Sheldon Kimber, while working more closely with Google’s infrastructure teams. This structure allows Alphabet to integrate Intersect’s technical expertise and project pipeline without disrupting its operating model.
Alphabet’s move shows a broader shift across big tech as AI competition intensifies and energy becomes a strategic priority. For example, last year, Microsoft struck a record-breaking clean energy agreement with Brookfield Renewable Partners to develop more than 10.5 gigawatts of renewable power capacity to support its data centers in the US and Europe between 2026 and 2030. Even Amazon Web Services has taken a similar path, backing large solar and wind projects across the US, Europe, and Australia to support its expanding cloud infrastructure.
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