In a major strategic move, Google’s parent company Alphabet has agreed to acquire Intersect Power — a leading energy and data center infrastructure developer — for $4.75 billion. This acquisition underscores the critical role of energy in scaling AI operations, as Google expands its data center capacity to support next-generation AI workloads.

Why This Acquisition Matters

AI workloads, particularly large generative models like Google Gemini, require immense and consistent power supply. Traditional electricity grids are often insufficient for the scale and reliability demands of modern AI data centers. By acquiring Intersect Power, Google gains direct control over energy generation and infrastructure, enabling it to expand compute and power resources simultaneously.

About Intersect Power

Intersect Power is known for its expertise in:

• Utility-scale solar and wind energy generation
• Battery storage systems for consistent, 24/7 power supply
• Co-located data center projects, combining compute and energy on the same site
• Developing projects designed to reach gigawatts of renewable energy capacity
• This acquisition gives Google the ability to bypass power grid constraints, streamline energy delivery, and scale AI infrastructure efficiently.

Strategic Importance for AI

AI models, especially during training, consume power comparable to small cities. This acquisition allows Google to:

1. Secure dedicated, scalable energy for its AI workloads
2. Reduce delays from grid limitations
3. Control energy costs and sustainability outcomes
4. Meet its carbon-free energy goals while supporting massive compute operations

In short, energy is no longer just a utility — it’s now a strategic asset in the AI race.

What’s Next

The deal is expected to close in early 2026, after which Intersect Power will continue operating under its brand while collaborating with Google’s infrastructure teams. Its renewable energy projects, including large solar and battery installations, will ensure reliable and sustainable power for Google’s AI data centers.

Conclusion

Alphabet’s $4.75 billion acquisition of Intersect Power highlights a new frontier in AI infrastructure strategy: energy is as critical as chips, servers, and algorithms. By controlling its own power supply, Google is positioning itself to lead not only in AI technology but also in the sustainable and reliable energy ecosystem that underpins the future of computing.