Alphabet Invests $4.75bn to Power AI Data Centers Independently

ISLAMABAD: Alphabet, Google’s parent company, has agreed to acquire Intersect Power, a data center and clean energy developer, for $4.75 billion in cash, along with the assumption of the company’s debt.

The deal, announced Monday, is aimed at expanding Alphabet’s ability to generate electricity for new data centers without relying on local utility providers, many of which are struggling to meet the growing power demands driven by artificial intelligence workloads. Securing reliable energy sources has become increasingly important for training and operating large AI models.

Alphabet previously held a minority stake in Intersect Power. That investment followed an $800 million strategic funding round led by Google and TPG Rise Climate last December. At the time, the partners set a goal of reaching $20 billion in total investment by 2030.

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Under the terms of the acquisition, Alphabet will take ownership of Intersect’s future development projects. However, the company’s existing operating assets are excluded from the deal. Those assets will be acquired by other investors and managed as a separate business.

Intersect’s upcoming data parks are designed to be built adjacent to wind, solar, and battery power facilities. These sites are expected to begin operations late next year and reach full completion by 2027, based on earlier disclosures from Google.

While Google will be the primary user of these campuses, Intersect has designed the facilities as industrial parks capable of hosting AI chips from other companies alongside Google’s infrastructure.