Alphabet, the parent company of Google, has agreed to buy Intersect Power for $4.75 billion in cash, including the assumption of debt. The acquisition aims to strengthen Google’s energy capabilities for its growing network of data parks.
The move will help Google reduce reliance on local utilities, which are struggling to meet the rising energy demands of AI operations. Securing reliable power is now crucial for training advanced AI models efficiently.
This purchase follows Alphabet’s earlier investment in Intersect Power. Last December, Google and TPG Rise Climate led an $800 million funding round, giving Alphabet a minority stake. The partnership set an ambitious target of $20 billion in total investment by 2030.
The acquisition will include Intersect’s future development projects but not its existing operations. Those operations will be sold to other investors and run as a separate entity. The deal is expected to close in the first half of next year.
Intersect’s new data parks, positioned near wind, solar, and battery power sources, are expected to start operations by late 2026. Full completion is anticipated by 2027. These facilities will primarily serve Google but are designed as industrial campuses capable of hosting other companies’ AI chips.
The development of data parks highlights Alphabet’s commitment to clean energy and sustainable infrastructure. By controlling both energy generation and AI infrastructure, Google aims to ensure uninterrupted operations and support the growing AI ecosystem.
Experts note that data parks are becoming a vital component for tech companies, combining energy, data, and AI processing in a single location. Alphabet’s strategy may set a model for other firms seeking to expand AI capabilities while maintaining sustainable energy practices.
The acquisition also reflects broader trends in the tech industry, where companies are increasingly investing in integrated energy and data solutions. Alphabet’s new data parks could play a key role in shaping the future of AI infrastructure worldwide.
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