(Bloomberg/Carmen Arroyo and Josh Saul) — Alphabet Inc. has agreed to buy clean energy developer Intersect Power LLC for $4.75 billion in cash, plus its existing debt, marking one of the largest deals by the tech giant in its push to dramatically expand its data center footprint to power AI.
The acquisition, announced Monday, is intended to give Alphabet’s Google access to more power generation for its data centers as aging US grids struggle to meet power demand that’s booming for the first time in decades thanks to artificial intelligence, new factories and overall electrification of the economy. Google took a minority stake in the energy provider last year by entering a partnership with Intersect to build big energy plants next to data center campuses, Bloomberg previously reported.
“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,” said Sundar Pichai, chief executive officer of Google and Alphabet, in a statement.
Intersect is a clean-energy developer backed by private equity firm TPG Inc. The company has been in close touch with hyperscalers this year marketing enormous data center sites in Texas, which Intersect’s CEO Sheldon Kimber has called “the Disneyland of energy” for its abundant wind and solar resources.
The company has $15 billion of energy assets in operation or under construction in the US, according to its website.
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