Alphabet Inc., the parent company of Google, has agreed to acquire Intersect Power LLC, a San Francisco-based developer of data center and energy infrastructure, in a $4.75 billion cash transaction plus assumed debt, the company announced. The deal aims to secure reliable power and expanded capacity for Alphabet’s rapidly growing artificial intelligence workloads and data center footprint.
Under the terms of the agreement, Alphabet will integrate Intersect’s energy and infrastructure projects, including multiple gigawatts of capacity under construction or in development, to more closely align power generation with future data center demands. Alphabet already held a minority stake in Intersect following a strategic funding round in 2024 involving Google and TPG Rise Climate.
Alphabet said Intersect will continue to operate under its own brand and be led by founder and CEO Sheldon Kimber while working closely with Google’s technical infrastructure teams on both existing and future co-located power and data center projects, including a site under construction in Haskell County, Texas.
The transaction reflects Alphabet’s response to growing energy constraints facing major technology companies as AI training and inference workloads drive unprecedented electricity demand. Securing long-term access to energy resources, particularly renewable power and storage, is increasingly seen as a strategic priority for hyperscalers seeking to expand cloud and AI services without overburdening local grids.
Alphabet CEO Sundar Pichai said the acquisition would help the company expand capacity and build new power generation in step with rising data center loads, while accelerating energy innovation efforts in the United States.
The deal remains subject to customary closing conditions and is expected to be completed in the first half of 2026. Industry analysts view Alphabet’s purchase of Intersect as a significant bet on the future of AI infrastructure, where access to dependable, scalable energy is increasingly critical to operational performance.
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