Alphabet Acquires Intersect for $4.75 Billion to Secure Energy for AI Data Centers
Alphabet announced on December 22, 2025, a definitive agreement to acquire Intersect for $4.75 billion in cash plus debt assumption. According to CNBC, the deal includes multiple gigawatts of energy and data center projects. Google already owns a minority stake in Intersect from a funding round announced in December 2024.
The transaction will bring Intersect's development team and existing projects under Alphabet's control. Intersect specializes in data center and energy infrastructure solutions. The acquisition is expected to close in the first half of 2026, subject to regulatory approval.
Intersect will continue operating as an independent company under its current brand. CEO Sheldon Kimber will remain at the helm. The company will partner closely with Google's technical infrastructure team on new and existing projects.
Why This Deal Matters
The acquisition addresses Google's growing electricity needs for artificial intelligence operations. AI data centers consume considerably more power than traditional computing facilities. Google has been competing with rivals like OpenAI, Microsoft, and Meta in the AI development race.
Data centers currently account for 1.5% of global electricity consumption, according to the International Energy Agency. The IEA projects that data center electricity demand worldwide will more than double by 2030. Global consumption is expected to reach 945 terawatt-hours by the end of the decade.
The deal allows Alphabet to control its energy supply rather than rely on external providers. This strategy helps the company avoid grid constraints and interconnection delays. Google can now build power generation alongside data centers, reducing dependence on aging electrical grids.
Industry Implications for Tech and Energy
Tech giants are rapidly transforming into major energy sector players. Microsoft, Meta, and Amazon have all signed large renewable energy contracts in 2025. Meta reached approximately 2.5 gigawatts of clean energy agreements with NextEra Energy Resources.
Pew Research Center found that data centers accounted for 4% of total US electricity use in 2024. Their energy demand is expected to more than double by 2030. Residential electricity bills in some regions could rise $16 to $18 per month due to data center expansion.
The acquisition reflects a broader trend toward vertical integration in the tech industry. Companies are moving from purchasing power to owning generation infrastructure. BloombergNEF forecasts US data center power demand will rise from 35 gigawatts in 2024 to 78 gigawatts by 2035.
Some observers express concern about potential grid reliability problems. Critics note that rapid data center expansion could strain local power systems. Proponents argue that co-located generation models reduce pressure on public grids. The debate continues over who should bear infrastructure upgrade costs.
Further Reading
For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. The index provides analysis of how technology companies are reshaping infrastructure investments worldwide.
