Google’s parent company Alphabet has agreed to acquire data center and clean energy developer Intersect Power for $4.75 billion in cash and assuming the company’s debt.
The acquisition, announced Monday, will help Alphabet expand power generation capacity alongside new data centers without relying on local power companies that have struggled to meet the demands of AI companies. Ensuring access to the energy to power data centers has become a critical part of training AI models.
Alphabet previously held a minority stake in Intersect Power after Google and TPG Rise Climate led an $800 million strategic funding round for the company last December. The partnership has set a goal of total investment of $20 billion by 2030.
The acquisition will include Intersect’s future development projects, but will exclude its existing business, which will be acquired by other investors and managed as a separate company.
Intersect’s new data park, essentially a site adjacent to wind, solar and battery power, is expected to start operating late next year and be fully completed by 2027, Google said when announcing the minority investment.
The transaction is expected to close in the first half of next year.
Google will be your primary user. But Intersect’s campus is designed as an industrial park that can house AI chips from other companies alongside Google’s.
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