In a big move to boost its power for AI and cloud services, Alphabet, the parent company of Google, has agreed to buy Intersect Power. The deal is worth $4.75 billion in cash, plus taking on some debt. This helps Alphabet expand its data centers more quickly to meet the substantial energy demands of artificial intelligence.
The announcement came on December 22, 2025. Alphabet already owns a small part of Intersect from an earlier investment. Intersect is a company that builds data centers and clean energy projects, like solar and battery storage. They focus on making power for tech needs in a green way.
Why is Alphabet doing this? Data centers use a lot of electricity, especially for AI training and cloud computing. The power grid in the U.S. can be slow and full of bottlenecks, making it hard to build new centers quickly. By buying Intersect, Alphabet can build its own energy sources right next to data centers. This speeds things up and helps use clean energy like solar and wind.
For example, they plan a joint project in Haskell County, Texas, where a data center and power site will be built together. Intersect has many gigawatts of projects in the works or being built. That’s enough power for millions of homes. The Intersect team, led by founder and CEO Sheldon Kimber, will keep running the company under its own name but work closely with Google’s tech team.
Not everything from Intersect is included. Their current working sites in Texas and projects in California will stay separate. Those will keep going with help from other investors like TPG Rise Climate.
Alphabet’s CEO, Sundar Pichai, said: “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 US innovation and leadership. We look forward to welcoming Sheldon and the Intersect team.” Sheldon Kimber added: “Intersect has always been focused on bringing innovation to the industry, and we look forward to accelerating at scale as part of Google. 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.”
This deal is part of a bigger trend. Tech giants like Google, Microsoft, and Amazon are racing to build more data centers for AI. But finding enough power is a challenge. Intersect’s skills in clean energy help Alphabet meet its goal of using carbon-free energy by 2030. It also lets them avoid waiting for utility companies to upgrade the grid.
Background on the companies: Alphabet started as Google’s parent in 2015. It owns YouTube, Android, and Google Cloud, which compete with AWS and Azure. Google Cloud is growing fast thanks to AI tools like Gemini. Intersect Power was founded in 2016 by Sheldon Kimber. It has built big solar farms and battery systems, mostly in Texas and California. They raised over $3 billion in funding before this deal.
From a tech point of view, this shows how AI is changing energy needs. Training big AI models can use as much power as a small city. By owning energy infrastructure, Alphabet can control costs and be more efficient. It might use AI to optimize power use in data centers, like predicting demand or managing batteries.
But there are risks. The deal needs approval from regulators, who might worry about big tech getting even bigger in energy. Energy projects can face delays from weather, supply chains, or local rules. Plus, clean energy like solar depends on the sun, so they need backups.
The deal is expected to close in the first half of 2026, if all goes well. This is one of Alphabet’s biggest buys in recent years, showing how serious they are about AI leadership.
Experts say this could start more deals where tech companies buy energy firms. Microsoft has done similar things with nuclear power. As AI grows, power will be key to who wins.
In the end, this acquisition mixes tech and green energy in a new way. It helps Alphabet stay ahead in the AI race while pushing for cleaner power. Watch for how this changes the industry in the coming years.
