Alphabet buys clean energy developer Intersect in $4.75bn push to power AI data centres

Alphabet, the parent company of Google, has agreed a $4.75 billion (£3.8bn) all-cash deal to acquire clean energy developer Intersect, as it accelerates efforts to secure reliable power for its rapidly expanding data centre estate across the United States.

The acquisition will give Alphabet direct control over Intersect’s portfolio of clean energy and data centre power projects that are already operating, under construction or in advanced development. Google previously held a minority stake in Intersect following a 2024 funding round.

The move underlines how America’s largest technology companies are increasingly investing directly in energy infrastructure, as conventional power grids struggle to keep up with the explosive growth in electricity demand driven by artificial intelligence and cloud computing.

Sundar Pichai, chief executive of Google and Alphabet, said the deal would strengthen the group’s ability to build energy capacity in tandem with its data centre expansion.

“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data centre load, and reimagine energy solutions to drive US innovation and leadership,” Pichai said.

Founded in 2016 by Sheldon Kimber, Intersect develops large-scale clean energy generation and storage projects, including solar and battery infrastructure. Kimber will remain as chief executive following the takeover.

“Modern infrastructure is the linchpin of American competitiveness in AI,” Kimber said. “We share Google’s conviction that energy innovation and community investment are the pillars of what must come next.”

Intersect is backed by Texas-based alternative asset manager TPG and currently has around $15 billion of assets either operating or under construction. By 2028, projects representing approximately 10.8 gigawatts of power are expected to be online or in development — more than 20 times the electricity output of the Hoover Dam.

For Alphabet, the deal reflects a broader strategic shift as big tech groups seek greater control over their energy supply. With AI models and data centres becoming vastly more power-intensive, companies including Google, Microsoft and Amazon have increasingly turned to direct investment in clean energy, nuclear power and on-site generation to ensure long-term capacity and price stability.

The Intersect acquisition positions Alphabet to build power generation and storage alongside new data centres, reducing reliance on overstretched grids while reinforcing its public commitment to clean energy as the AI race intensifies.