TL;DR
Alphabet will pay $4.75 billion in cash, plus assume Intersect Power’s debt, to acquire the data center and clean energy developer. The deal covers Intersect’s future development projects — designed to colocate data centers next to wind, solar and battery storage — while existing operations will be sold to other investors and run separately.
What happened
Alphabet announced an agreement to buy Intersect Power for $4.75 billion in cash, with the buyer also taking on Intersect’s outstanding debt. The purchase is intended to let Alphabet expand power-generation capacity and build new data center space without depending solely on strained local utilities that have struggled to meet the rising electricity demands of AI workloads. The deal includes Intersect’s planned development projects — described as data parks sited adjacent to wind, solar and battery storage — but excludes Intersect’s current operating assets, which will be acquired by other investors and managed independently. Alphabet had already held a minority stake after participating, alongside TPG Rise Climate, in an $800 million strategic funding round last year that aimed at a broader investment target through 2030. Google is expected to be the primary user of the new campuses, which are also being designed to host other companies’ AI hardware. The transaction is slated to close in the first half of next year.
Why it matters
- Securing dedicated generation and storage reduces Alphabet’s reliance on constrained local utilities as AI computing demand grows.
- Owning future clean-energy-linked data parks could accelerate deployment of large-scale AI infrastructure tied directly to renewables and batteries.
- The move highlights how hyperscalers are vertically integrating power and compute to manage supply risks and meet sustainability goals.
- By structuring campuses to host other firms, Alphabet could shape market access to colocated renewable-backed AI capacity.
Key facts
- Purchase price: $4.75 billion in cash, plus assumption of Intersect Power’s debt.
- Deal scope: Includes Intersect’s future development projects but excludes its existing operating assets.
- Existing operations: Those assets will be acquired by other investors and operated as a separate company.
- Previous stake: Alphabet previously held a minority position after joining an $800 million strategic funding round with TPG Rise Climate last December.
- Partnership target: The earlier investment set a target of $20 billion in total investment by 2030 (as part of that partnership).
- Project design: Intersect’s new "data parks" are planned next to wind, solar and battery storage to integrate generation and compute.
- Timeline: Intersect said new campuses were expected to be operational late next year and fully completed by 2027.
- Primary user: Google will be the main user of the acquired development projects, though campuses can host other companies’ AI chips.
- Close timing: The transaction is expected to close in the first half of next year.
What to watch next
- Regulatory approvals and the exact closing date for the acquisition — not confirmed in the source.
- Which investors acquire Intersect’s existing operating assets and their management plans — not confirmed in the source.
- Whether other companies take space in the new Intersect data parks and on what commercial terms (source confirms parks are designed to host other companies).
Quick glossary
- Data center: A facility used to house computer systems and associated components such as storage and networking equipment.
- Battery storage: Technology that stores electrical energy for later use, often used to balance supply from variable renewable sources.
- Power-generation capacity: The total amount of electrical power a generation system can produce and deliver at a given time.
- Industrial park: A zoned area designed to host multiple industrial or commercial operations, potentially sharing infrastructure.
- AI chips: Specialized processors designed to accelerate machine learning workloads and other artificial intelligence computations.
Reader FAQ
How much is Alphabet paying for Intersect Power?
Alphabet will pay $4.75 billion in cash and assume Intersect’s debt.
Does the deal include Intersect’s existing operating assets?
No. The acquisition covers future development projects; existing operations will be bought by other investors and run separately.
When will the transaction close?
The deal is expected to close in the first half of next year.
Will other companies be able to use the Intersect campuses?
Yes. The campuses are designed as industrial parks that can host other companies’ AI chips alongside Google’s.
IN BRIEF Posted: 1:10 PM PST · December 22, 2025 IMAGE CREDITS: KLAUDIA RADECKA/NURPHOTO / GETTY IMAGES Marina Temkin Alphabet to buy Intersect Power to bypass energy grid bottlenecks Google…
Sources
- Alphabet to buy Intersect Power to bypass energy grid bottlenecks
- Alphabet Announces Agreement to Acquire Intersect …
- Alphabet to acquire data center and energy infrastructure …
- Alphabet Agrees to Buy Intersect Power in $4.75 Billion …
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