- Google will buy Intersect Power for $4.75 billion after investing $800 million in 2024
- Intersect will continue to operate separately, with its existing “world-class” team
- Some California and Texas assets aren’t included, will form a new company
Alphabet has announced the acquisition of Intersect Power for $4.75 billion in cash to help support the company’s data center strategy by adding more power generation to the company’s portfolio.
Alphabet already has a minority stake in the company following around $800 million in funding earlier in 2024, but its full takeover is expected to complete in the first half of 2026.
In an announcement, Google‘s parent company described Intersect’s team as “world-class,” adding that the workers would be retained under its new ownership.
Google acquires Intersect Power
Not only do employee contracts look to be retained, but Intersect is set to operate as a wholly separate company from Google. The deal just means that Intersect will get the tech giant’s financial backing, and that Google Cloud’s data center strategy will get better support.
In the handover, Google will also gain access to “multiple gigawatts of energy and data center projects in development, or under construction.”
“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership,” Google CEO Sundair Pichai wrote.
Besides entering into a strategic partnership with Google (before being fully acquired), Intersect also has a noteworthy partnership with Tesla, being one of the company’s biggest buyers of its Megapacks, securing 17.7GWh of storage.
However, some of Intersect’s California and Texas assets will be excluded from the deal, and they will be spun out into a separate company. TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners (those projects’ investors) will continue to support those facilities.
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