Alphabet, Google’s parent company, has entered into a definitive agreement to acquire Intersect Power for $4.75 billion in cash plus the assumption of debt.
The strategic move is designed to dismantle the single largest bottleneck facing the tech industry today: the scarcity of stable, high-capacity electricity. By bringing power generation in-house, Alphabet aims to bypass the technical limbo of public grid queues and accelerate its massive AI and cloud infrastructure build-out.
Co-location:
The acquisition centers on Intersect’s bring-your-own-generation model. Rather than relying on strained local utilities, the company co-locates massive solar, wind, and battery storage projects directly alongside data center campuses.
A flagship example is the joint project currently under construction in Haskell County, Texas, which integrates power and compute on a single site. This vertically integrated approach significantly compresses construction timelines and reduces the need for long-range transmission lines, allowing Alphabet to scale its Gemini and cloud platforms at a pace the traditional grid cannot support.
Building a clean energy pipeline:
While Intersect will continue to operate as an independent brand under CEO Sheldon Kimber, it will work in lockstep with Google’s technical infrastructure teams. The deal includes multiple gigawatts of projects currently in development or under construction. Beyond renewables, Alphabet plans to use this partnership to commercialize emerging next-generation technologies, including advanced geothermal, long-duration energy storage, and gas with carbon capture. This ensures that as Google’s power demand doubles, its energy source remains carbon-free and resilient.
Impact on global energy markets:
The deal signals a paradigm shift in how hyperscalers view the energy sector. By moving upstream into energy development, Alphabet is no longer just a customer of the grid; it is becoming a significant power producer.
The acquisition reflects a broader 2025 trend where tech giants are forced to take direct control of their value chains to ensure that their $60+ billion annual capital expenditures are not stalled by aging infrastructure. The transaction is expected to close in the first half of 2026.
