Alphabet to acquire Intersect for $4.75 billion

• Intersect has $15 billion in assets operating or under construction, with projects totaling 10.8 gigawatts expected by 2028 - more than 20 times the Hoover Dam's output
• Google previously invested in Intersect alongside TPG Rise Climate in a $800+ million funding round in December 2023
• Intersect's Texas and California assets will remain independent and not be included in the acquisition, while the company will continue operating separately from Alphabet

Alphabet to Acquire Clean Energy Developer Intersect for $4.75 Billion

Alphabet announced on December 22 it will acquire clean energy developer Intersect for $4.75 billion in cash, plus assumed debt, marking another significant Big Tech investment in energy infrastructure to support AI development. The deal excludes Intersect's existing Texas operations and California assets, which will continue as an independent entity.

Key Details:

• Intersect currently has $15 billion in assets operating or under construction
• By 2028, the company expects 10.8 gigawatts of power capacity online or in development—equivalent to more than 20 times the Hoover Dam's output
• Google previously invested in Intersect alongside TPG Rise Climate during an $800+ million funding round in December 2023

Strategic Context:

The acquisition addresses the mounting electricity demands of generative AI development, as U.S. power grids struggle to keep pace with Big Tech's computational needs. This follows Alphabet's recent partnership with NextEra to develop new energy supplies for Google Cloud operations across the United States.

Deal Structure:

• Intersect will operate separately from Alphabet post-acquisition
• The company will focus on developing industrial parks housing gigawatts of data center capacity co-located with clean energy plants
• Intersect will explore emerging technologies to diversify energy supply while supporting Google's U.S. data center investments

Market Implications:

This transaction underscores the critical intersection of AI development and energy infrastructure, highlighting how tech giants are vertically integrating to secure reliable, clean power sources. The deal signals continued heavy capital deployment by Big Tech to overcome infrastructure bottlenecks limiting AI expansion, potentially accelerating similar acquisitions across the sector.