Alphabet Acquires Intersect for $4.75 Billion to Power AI Data Centers

Alphabet, Google's parent company, officially announced the acquisition of renewable energy infrastructure developer Intersect on December 22–23, 2025. The deal is valued at $4.75 billion. This strategic move is driven by the critical need to provide stable and clean power to Google's exponentially growing network of data centers serving resource-intensive Gemini models. Energy consumption by AI clusters is rising at such a rate that traditional utility grids can no longer handle the load.

Acquiring Intersect will allow Alphabet to take direct control of energy generation, storage, and distribution, integrating these processes directly into its computing architecture. This will not only reduce the company's carbon footprint but also mitigate the risks of downtime due to grid outages. Experts call this deal a turning point where tech giants are forced to become energy operators to sustain the pace of artificial intelligence development.

Source: Reuters