Alphabet has announced its acquisition of Intersect Power, a clean energy and data center developer, for $4.75 billion in cash, along with the assumption of the company’s existing debt. This strategic move, unveiled on Monday, aims to bolster Alphabet’s energy generation capabilities, particularly in light of rising demands from AI companies and the limitations posed by local utilities.
This acquisition not only enhances Alphabet’s power supply for its data centers but also represents a vital step in addressing the escalating energy needs associated with training AI models. Previously, Alphabet had held a minority stake in Intersect Power, following an $800 million investment led by Google and TPG Rise Climate in December, which was aimed at achieving a total of $20 billion in investments by 2030.
The deal will encompass Intersect’s future development projects, excluding its existing operations that will be independently acquired by other investors. Alphabet’s planned data parks, strategically located near wind, solar, and battery power sources, are anticipated to become operational by late 2024 and reach full completion by 2027. The transaction is projected to conclude in the first half of next year.
Key Points:
- Acquisition Value: $4.75 billion in cash with debt assumption.
- Purpose: To enhance energy access for AI-driven data centers amid local utility constraints.
- Future Projects: New development expected to operationalize by late 2024.
- Closing Timeline: Anticipated completion in early 2024.
This acquisition positions Alphabet strategically in the evolving clean energy landscape, ensuring its data centers are equipped to meet future demands.
