Google boosts AI data center power with $4.75B Intersect acquisition
What's the story
Google's parent company, Alphabet, has announced its acquisition of clean energy developer Intersect Power for $4.75 billion in cash, plus the assumption of existing debt. The deal is one of the biggest moves by the tech giant to expand its data center operations and meet the increasing power demand driven by artificial intelligence (AI). The acquisition will give Google's data centers access to more power generation capabilities as aging US grids struggle with this unprecedented demand.
Strategic partnership
Intersect's role in Alphabet's energy strategy
Last year, Google invested in Intersect as part of a strategic partnership to build large energy plants near data center campuses. The acquisition will help Alphabet expand capacity and operate more efficiently by building new power generation facilities in line with new data center loads. "Intersect will help us expand capacity, operate more nimbly...and reimagine energy solutions to drive US innovation and leadership," said Sundar Pichai, CEO of Google and Alphabet.
Project pipeline
Intersect's clean energy projects and future plans
Intersect, a clean-energy developer backed by private equity firm TPG Inc., has been in talks with hyperscalers this year about large data center sites in Texas. The company has $15 billion worth of energy assets either operational or under construction in the US. As part of the acquisition deal, Intersect will explore new technologies to diversify energy supply, especially for Google's massive data center investments across the US.
Operational continuity
Intersect to remain independent post-acquisition
Despite the acquisition, Intersect will continue to operate independently under its own brand with CEO Sheldon Kimber at the helm. Its existing operating assets in Texas are not part of this acquisition. The deal is just one part of Google's larger strategy to power its energy-intensive AI infrastructure.