Mirror Review
December 23, 2025
Alphabet, best known as Google’s parent company, is buying clean energy developer Intersect in a $4.75 billion deal to solve a growing problem most people never see: Power.
With AI driving record electricity demand, the Alphabet Intersect acquisition is about securing reliable energy first, so future data centers can actually turn on.
Alphabet says the move will help advance U.S. energy innovation while keeping up with the explosive growth of AI, cloud computing, and data centers.
What the Alphabet–Intersect Deal Includes
Alphabet announced an all-cash agreement valued at $4.75 billion, including assumed debt. The deal is expected to close in the first half of 2026, subject to regulatory approvals.
Key details of the Alphabet Intersect acquisition:
- Buyer: Alphabet Inc.
- Target: Intersect Power
- Deal value: $4.75 billion (cash + debt)
- Leadership: Intersect CEO Sheldon Kimber stays on
- Structure: Intersect operates as an independent brand
- Assets included: Multi-gigawatt clean energy and infrastructure pipeline
- Assets excluded: Certain operating projects held by TPG Rise Climate
Alphabet already owned a minority stake following a major funding round in late 2024, making this a long-planned step rather than a sudden move.
Why Alphabet Needed Intersect Now
AI is pushing data centers to their physical limits. Training large models like Gemini requires massive, always-on electricity. But in many parts of the U.S., power availability has become the biggest bottleneck, not chips or land.
Alphabet’s projected 2025 capital spending is about $92 billion, most of it tied to AI and cloud infrastructure. Without guaranteed power, those investments risk sitting idle.
This is where Intersect changes the equation.
Alphabet Intersect Acquisition and the “Power-First” Model
Traditional data center builds follow a flawed sequence. Companies build the facility first, then wait years for grid connections.
Intersect flips that process.
Its power-first, co-location model develops clean energy generation and data center loads together on the same site. That reduces delays, avoids overloading local grids, and shortens project timelines.
Google explained this approach earlier, saying co-locating energy and compute helps bring capacity online faster while supporting grid reliability.
As Intersect CEO Sheldon Kimber put it, the goal is to build “energy infrastructure that matches the scale and urgency of modern computing demand.”
How This Boosts U.S. Energy Innovation
The Alphabet Intersect acquisition is not just about renewables. It is about modernizing how energy is built and used in the U.S.
Key innovation benefits include:
- Faster energy deployment: Power and data centers are planned together, cutting years off development timelines.
- Grid relief instead of grid strain: New generation meets new demand directly, rather than competing with households and businesses.
- Massive battery storage expansion: Intersect is a major buyer of grid-scale battery systems, helping make renewables reliable around the clock.
- New energy technologies: Alphabet says Intersect will also explore advanced geothermal, long-duration storage, and gas with carbon capture.
- 24/7 carbon-free energy progress: The deal supports Google’s goal to run on carbon-free energy every hour of every day by 2030.
Intersect’s Scale Shows Why Alphabet Wanted In
Intersect brings a development pipeline valued at roughly $15 billion, with plans to reach over 10.8 gigawatts of generation and storage capacity by 2028.
That is more than 20 times the output of the Hoover Dam.
Some of its major projects include large solar and battery sites in Texas and California, designed to support high-demand industrial and computing loads.
What Analysts Say About the Strategy
Industry analysts see this as a turning point.
Many now view energy as part of the core tech stack, not just a utility bill. Owning energy development gives Alphabet control over timing, cost, and reliability.
It also reduces the risk of “stranded assets,” where data centers are ready but cannot draw power.
In simple terms, Alphabet is making sure the lights come on when the servers are ready.
Why This Matters Beyond Google
The Alphabet Intersect acquisition highlights how tech companies are becoming major energy players.
Amazon, Microsoft, and Meta are also spending tens of billions each year to secure infrastructure for AI. But Alphabet’s move goes a step further by directly owning the energy pipeline.
For the US, this means:
- Faster clean energy buildout
- New investment in rural communities
- Modernized grids without raising costs for regular consumers
Alphabet says the goal is abundant, affordable energy that benefits both industry and local regions.
The Bigger Picture Ahead
As the Alphabet Intersect deal moves toward closing, attention will shift to execution.
If Alphabet successfully integrates Intersect’s development expertise with Google’s infrastructure teams, this model could become the new standard for data centers.
The Alphabet Intersect acquisition signals a future where energy and computing are planned together from day one.
In a world powered by AI, innovation no longer starts with software alone. It starts with electricity.
Maria Isabel Rodrigues
