Alphabet announced a definitive agreement to acquire Intersect Power for $4.75 billion in cash and to assume the company’s existing debt, bringing the total transaction value to $5.2 billion. The deal includes Intersect’s development pipeline of solar and battery projects that are currently in construction or under development, but it excludes the company’s operating assets in Texas and the operating and in‑development assets in California, which will remain independent.
The acquisition is a key component of Alphabet’s “full‑stack AI” strategy, which seeks to control every layer of the AI value chain—from model training to the physical infrastructure that powers it. By adding Intersect’s renewable portfolio, Alphabet aims to secure scalable, carbon‑free electricity for its expanding data‑center footprint, a critical need as AI workloads grow faster than traditional compute demand. The move also supports Google Cloud’s rapid AI‑driven growth, which saw a 34% revenue increase in Q3 2025.
Intersect’s portfolio is valued at roughly $15 billion, but the fact‑check report clarifies that the $4.75 billion purchase price covers only the assets in development or construction. Intersect’s existing operating assets—about 2.2 GWp of solar PV and 1.4 GWh of storage in 2023—are not part of the deal, underscoring that Alphabet is targeting future‑stage projects that can be integrated with its data‑center plans.
Alphabet had already invested in Intersect Power through a minority stake in a prior funding round, signaling a long‑term strategic interest in clean‑energy solutions for data centers. The new acquisition deepens that relationship and positions Alphabet to negotiate power contracts directly with a developer that specializes in data‑center‑grade renewable projects.
Sundar Pichai, Alphabet’s CEO, said the deal would “expand capacity, operate more nimbly in building new power generation in lockstep with new data‑center load, and reimagine energy solutions to drive U.S. innovation and leadership.” The statement highlights Alphabet’s intent to align power procurement with AI demand and to reinforce its leadership in sustainable data‑center operations.
Alphabet’s Q3 2025 results—revenue of $102.3 billion, a 16% year‑over‑year increase, and a 30.5% operating margin—demonstrate the financial strength that underpins this investment. The company projected capital expenditures of $91 billion to $93 billion for 2025, with a significant increase planned for 2026 to support AI infrastructure, underscoring the strategic importance of the Intersect acquisition in Alphabet’s long‑term growth plan.
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