- Google will buy Intersect Power for $4.75 billion after investing $800 million in 2024
- Intersect will continue to operate separately, with its current “world class” team
- Some California and Texas assets are not included, they will form a new company.
Alphabet has announced the acquisition of Intersect Power for $4.75 billion in cash to help support the company’s data center strategy by adding more power generation to its portfolio.
Alphabet already has a minority stake in the company after financing around $800 million in early 2024, but its full acquisition is expected to be completed in the first half of 2026.
In an announcement, Google’s parent company described Intersect’s team as “world-class,” adding that workers would be retained under its new ownership.
Google acquires Intersect Power
Not only does it appear that employee contracts will remain in place, but Intersect will operate as a completely separate company from Google. The deal simply means that Intersect will get financial backing from the tech giant and that Google Cloud’s data center strategy will get better support.
In the transfer, Google will also gain access to “multiple gigawatts of energy and data center projects in development or under construction.”
“Intersect will help us expand capacity, operate with more agility in building new power generation alongside new data center load, and reimagine energy solutions to drive American innovation and leadership,” Google CEO Sundair Pichai wrote.
In addition to establishing a strategic partnership with Google (before being fully acquired), Intersect also has a notable partnership with Tesla, being one of the company’s largest buyers of its Megapacks, securing 17.7 GWh of storage.
However, some of Intersect’s assets in California and Texas will be excluded from the deal and spun off into a separate company. TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners (the investors in those projects) will continue to support those facilities.
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