December 23, 2025 Google parent company Alphabet said Monday that it will acquire Intersect Power for $4.75 billion in cash plus debt. Intersect will continue operating independently, but Google says the deal helps it bring new capacity online faster, a key advantage as AI growth turns electricity and grid access into the next major bottleneck.
The deal is designed to speed up the construction of data centres and the energy systems needed to run them as demand for artificial intelligence surges. “Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data-centre load, and reimagine energy solutions to drive U.S. innovation and leadership,” Google and Alphabet CEO Sundar Pichai said in a statement.
The move comes as Big Tech competes for the electricity, land and grid connections required to support AI training and inference. Google is battling rivals such as OpenAI, which has made enormous infrastructure commitments to expand compute capacity since the generative AI boom began.
Google already held a minority stake in Intersect from a funding round announced last December. Intersect said at the time that its partnership with Google and investor TPG Rise Climate aimed to develop gigawatts of data-centre capacity across the United States, including a planned $20 billion investment in renewable power infrastructure by the end of the decade.
Alphabet said Intersect will work closely with Google’s technical infrastructure team, including on a co-located power site and data-centre project in Haskell County, Texas. Google has previously announced a $40 billion investment plan in Texas through 2027, including data-centre campuses in Haskell and Armstrong counties.
Not all of Intersect’s assets are included in the acquisition. Alphabet said Intersect’s existing operating and in-development assets in California, as well as its existing operating assets in Texas, are excluded. Those projects will continue as a separate, independent company supported by Intersect’s current investors, including TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners.
Intersect will continue operating as a separate brand under CEO Sheldon Kimber. The transaction is expected to close in the first half of 2026, subject to customary closing conditions.
The move underscores how aggressively Big Tech is repositioning around AI infrastructure. Rivals such as OpenAI have already committed more than $1.4 trillion to data-centre and compute capacity through partnerships. Alphabet’s Intersect acquisition is a signal that energy access is now a strategic weapon in the AI arms race.
