Alphabet, the parent company of Google, announced it would acquire Intersect, a renewable energy developer. Google already owns a minority stake in Intersect from a previously announced funding round, but will purchase the company for $4.75 billion in cash, plus the assumption of debt.
The Oberon Solar + Storage project completed by Intersect Power in 2023.
The acquisition will enable Google to bring more electricity generation capacity online faster for its data center development.
Included in the transaction are Intersect’s team and multiple gigawatts of energy and data center projects in development, or under construction, from its successful existing partnership with Google. Intersect will also explore a range of emerging technologies to increase and diversify energy supply, while supporting Google’s U.S. data center investments to meet its Cloud customers’ and users’ demand.
Intersect’s operations will remain separate from Alphabet and Google under the Intersect brand. It will partner closely with Google’s technical infrastructure team, continuing work on in-development, and new, joint projects; this includes the companies’ first announced co-located data center and power site, under construction in Haskell County, Texas.
Intersect’s existing operating assets in Texas, and its operating and in-development assets in California, will not be part of the acquisition. Those assets continue to operate as an independent company, supported by existing investors TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners. Intersect expects a seamless transition and service continuity for customers of those assets.
“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive U.S. innovation and leadership,” said Sundar Pichai, CEO of Google and Alphabet.
“Intersect has always been focused on bringing innovation to the industry and we look forward to accelerating at scale as part of Google,” said Sheldon Kimber, founder and CEO of Intersect. “Modern infrastructure is the linchpin of American competitiveness in AI. We share Google’s conviction that energy innovation and community investment are the pillars of what must come next.”
The deal is subject to customary closing conditions and anticipated to close in the first half of 2026.
News item from Google
Tell Us What You Think!