Alphabet to buy Intersect Power to bypass energy grid bottlenecks

Alphabet, Google's parent company, has agreed to acquire Intersect Power, a developer of data centers and clean energy projects, including taking on the company’s debt. This acquisition aims to help Alphabet expand its power generation capacity to support new data centers without depending on local utilities, which are currently struggling to meet the growing energy demands driven by AI companies. Alphabet had previously held a minority stake in Intersect Power following a strategic funding round led by Google and TPG Rise Climate, targeting $20 billion in total investment by 2030. The deal covers Intersect Power’s future development projects but excludes its existing operations, which will be acquired by other investors and managed separately. Intersect’s upcoming data parks, located near renewable energy sources like wind, solar, and battery storage, are expected to begin operations late next year and be fully completed by 2027. Google will be the primary user of these facilities, though the campuses are designed as industrial parks that can also host other companies’ AI chip operations.