Alphabet to buy clean energy developer Intersect in $4.75 billion deal amid AI push

Alphabet said it will acquire clean energy developer Intersect for $4.75 billion in cash, including assumed debt, according to Reuters. The move reflects growing pressure on US power grids as AI-driven data centers demand unprecedented amounts of electricity.

The deal gives Alphabet control over Intersect’s energy and data center projects that are under development or under construction, strengthening Google’s ability to secure reliable power for its expanding AI and cloud operations.

Why this matters

AI is becoming an energy business. Generative AI models and large-scale data centers are pushing electricity demand sharply higher, forcing tech giants to lock in long-term power supply.
Scale is massive. Intersect has around $15 billion in assets operating or under construction, and projects totaling 10.8 gigawatts of power expected to be online or in development by 2028, more than 20 times the output of the Hoover Dam.
Energy security is now strategic. Rather than relying solely on utilities, Big Tech is increasingly buying or partnering directly with energy developers.

Deal structure and scope

Alphabet will acquire Intersect’s energy and data center projects currently being built or developed, while some existing assets will remain outside the transaction. Intersect’s operating assets in Texas and its operating and in-development assets in California will continue as a separate company backed by existing investors.

Notably, Intersect’s Texas portfolio includes Quantum, a clean energy storage system built directly alongside a Google data center campus, highlighting how closely energy planning is now tied to data infrastructure.

Part of a broader trend

The acquisition follows a string of Alphabet energy moves. Earlier this month, Google Cloud expanded its partnership with NextEra to build new power supplies across the US. Similar strategies are emerging across the tech sector as companies race to support AI growth without running into energy bottlenecks.

Alphabet’s Intersect deal shows that AI expansion is no longer just about chips and software, but also about power generation and grid resilience. As AI scales into 2026 and beyond, control over clean, reliable energy may become one of Big Tech’s biggest competitive advantages.

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