Alphabet Bets $4.75B on Intersect to Power AI Expansion with Clean Energy
Alphabet’s acquisition of Intersect Power for $4.75 billion in cash plus assumed debt marks a strategic pivot toward securing energy infrastructure for its AI ambitions. The deal grants Alphabet access to Intersect’s 'data parks'—integrated facilities combining renewable energy sources like solar and wind with battery storage—to address the power bottlenecks plaguing tech giants.
Intersect will operate as a standalone brand under founder Sheldon Kimber, while its Texas and California assets serving third parties will spin off. The transaction underscores the industry’s scramble to lock down energy resources as AI workloads strain existing data center capacity.
'You can’t algorithm your way out of a physics problem,' said one analyst, noting that Alphabet’s MOVE preempts rivals in securing gigawatt-scale clean energy projects. The deal also hedges against regulatory pressure as lawmakers scrutinize tech’s carbon footprint.
