Alphabet acquires clean energy developer Intersect for $4.75 billion

Alphabet acquires Intersect in $4.75 billion deal

Alphabet, the parent company of Google, announced the acquisition of clean energy developer Intersect for $4.75 billion in cash, including the assumption of the company's debts. The transaction was disclosed on Monday, December 22.

The purchase comes at a time when technology giants are ramping up payments to meet the growing demand for energy, particularly driven by the development of artificial intelligence (AI). The electrical grids in the United States are facing pressure to adapt to this rising demand.

Acquisition details and impact

Under the agreement, Alphabet will take over the energy projects and data centers of Intersect that are in development or under construction. With $15 billion in assets, Intersect boasts a wide range of projects, with a forecast that by 2028, its facilities will reach a capacity of approximately 10.8 gigawatts. This capacity is more than 20 times the energy generated by the Hoover Dam, one of the largest in the United States.

This acquisition reflects Alphabet's strategy to increase its investments in the energy sector. Recently, NextEra, a utility company, announced the expansion of its partnership with Google Cloud to develop new energy sources aimed at operations in the U.S.

Financial aspects and new projects

Google, with the help of TPG Rise Climate, had already supported Intersect with over $800 million in a funding round held last year. The deal also includes plans to create industrial parks aimed at housing data centers in areas close to new clean energy plants.

Intersect will continue its operations independently of Alphabet. Existing and operational projects in Texas and California are not part of the acquisition and will remain as a standalone company, according to information released by Alphabet. An example is the Quantum project, a clean energy storage system being built beside a Google data center.

Future outlook

Intersect plans to integrate new technologies to diversify and expand its energy offerings, also supporting Google's investments in data centers across the United States. This acquisition is a significant step for Alphabet, which aims to strengthen its presence in the clean energy sector while meeting the growing demand for sustainable solutions in the tech market.