December 29, 2025 Google parent Alphabet said Monday it will acquire data-centre and energy developer Intersect Power in a deal valued at US$4.75 billion in cash plus assumed debt, giving Google direct access to multi-gigawatt power and data-centre projects as demand from artificial intelligence strains electricity supply across the U.S. The deal is expected to close in the first half of 2026.
The acquisition will see Intersect work closely with Google on co-located power and data-centre campuses such as the company’s Haskell County, Texas site, but its legacy projects will continue under current investors.
Alphabet announced the deal on Monday, describing Intersect as a way to “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,” CEO Sundar Pichai said in a statement. Intersect will remain a separate brand led by CEO Sheldon Kimber. But it will effectively become Google’s in-house developer for new AI-grade power and data-centre infrastructure.
Under the terms disclosed so far, Google is acquiring Intersect’s development platform and a portfolio of energy and data-centre projects that were already being advanced through a strategic partnership announced in late 2024. That earlier arrangement envisaged up to US$20 billion in renewable-power and data-centre investment this decade, focused on pairing large-scale computing loads directly with new generation.
The purchase does not include Intersect’s existing operating assets in Texas or its current and in-development projects in California. Those will be carved out into a separate, independent company backed by existing investors TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners, which will continue to develop and operate them outside Alphabet’s control.
The move comes as AI pushes tech giants into an arms race for electricity and grid capacity. OpenAI, for example, has outlined infrastructure ambitions running into the hundreds of billions of dollars through ventures such as the Stargate data-centre project. Regulators and utilities, meanwhile, are increasingly exploring co-location of data centres with new generation to reduce grid stress and accelerate connection timelines.
Intersect has positioned itself directly in that space, arguing in a recent blog post that data centres built alongside renewables, batteries and “flexible” backup plants are the fastest and most reliable way to bring new energy online. For Alphabet, buying the developer outright gives it greater control over where and how new capacity is built, rather than relying solely on power-purchase agreements or third-party campuses.
If the deal clears regulatory review on schedule, Intersect will plug into Google’s technical-infrastructure organisation, helping shape future campuses like the Haskell County project in Texas, part of a previously announced US$40 billion investment plan in the state through 2027.
