Alphabet, the parent company of Google, has announced a significant acquisition of Intersect, a clean energy developer, in a deal valued at $4.75 billion. This acquisition marks a crucial exit for Intersect, which has evolved into a key player in renewable energy since its founding in 2016.
Based in San Francisco after relocating from Beaverton, Oregon, Intersect specializes in utility-scale renewable energy, including solar power and battery storage, and has raised over $10 billion to date. The acquisition aims to enhance Google’s capabilities in providing energy for its AI operations by allowing the company to generate power directly alongside its data centers, thus reducing the time needed to connect to the electrical grid.
The deal is structured as cash plus the assumption of debt, with an expected closure in the first half of 2026. Intersect will maintain its brand and leadership under CEO Sheldon Kimber, while its operations in Texas and California will not be included in the acquisition, remaining with existing investors.
This acquisition adds a new dynamic to the ongoing competition among cloud service giants like Microsoft and Amazon, who are also seeking to secure energy resources for their AI infrastructure through various strategies.