Alphabet Acquires Clean Energy Developer Intersect Power for $4.75 Billion to Fuel AI Data Center Expansion

Alphabet Inc., the parent company of Google, has agreed to acquire clean energy developer Intersect Power LLC for $4.75 billion in cash, plus existing debt, marking one of the largest deals focused on integrating energy infrastructure directly into a major technology company's operations. Announced on Monday, December 22, 2025, the acquisition underscores Alphabet’s aggressive strategy to secure the vast energy resources required to power its rapidly expanding Artificial Intelligence (AI) infrastructure.

Strategic Move to Accelerate AI Data Center Capacity

The primary driver behind the substantial investment is the urgent need to bring more data center and generation capacity online quickly. Alphabet stated in a news release that the deal is designed to allow more AI data center and generation capacity to come online more rapidly while accelerating energy development and innovation.

The proliferation of sophisticated AI models demands immense computational power, which translates directly into higher electricity consumption. By acquiring Intersect, which provides data center and energy infrastructure solutions, Alphabet is taking direct control over a critical component of its future growth pipeline.

The $4.75 billion deal is designed to allow more artificial intelligence (AI) data center and generation capacity to come online more quickly while accelerating energy development and innovation, Alphabet said in a Monday (Dec. 22) news release.

Key Financial and Operational Details

The transaction is structured as an all-cash purchase, supplemented by the assumption of Intersect’s existing debt. The acquisition is comprehensive, including both Intersect's existing energy assets and its pipeline of data-center projects.

• The total purchase price is $4.75 billion in cash, plus assumed debt.
• The acquisition includes all of Intersect's data-center projects and energy assets.
• The deal is expected to close in the first half of 2026.

This move highlights how major technology companies are increasingly viewing energy generation and procurement as a core strategic function rather than a simple operational expense, especially as they commit billions to expand their AI capabilities.

Implications for Tech and Clean Energy Sectors

Alphabet’s decision to buy a clean energy developer rather than simply signing long-term power purchase agreements (PPAs) signals a shift toward vertical integration in energy sourcing. This approach provides greater certainty and control over the power supply, which is crucial for maintaining the high uptime and efficiency required by hyperscale data centers.

For the clean energy sector, the acquisition validates the value of developers who can integrate generation capacity—likely solar and storage—directly with large-scale industrial consumers like data centers. As tech giants spend billions to expand their infrastructure, the demand for dedicated, reliable, and clean power solutions is soaring.

The deal is one of the largest recent transactions involving a major tech firm acquiring a dedicated clean energy developer, reflecting the intense competition among companies like Alphabet, Microsoft, and Amazon to secure sustainable and scalable power for their AI ambitions.

The acquisition is expected to finalize in the first half of 2026, pending regulatory approvals. Alphabet has also reportedly increased its 2026 investment outlook, suggesting that the integration of Intersect will immediately contribute to the company's aggressive infrastructure build-out plans.