- Google to buy Intersect Power for $4.75 billion after investing $800 million in 2024
- Intersect will continue to operate separately with its existing “world class” team
- Some assets in California and Texas are not included, will form a new company
Alphabet has announced the purchase of Intersect Power for $4.75 billion in cash to help support the company’s data center strategy by adding more power generation to the company’s portfolio.
Alphabet already has a minority stake in the company after about $800 million in funding earlier in 2024, but its full takeover is expected to close in the first half of 2026.
In a statement, Google’s parent company described Intersect’s team as “world-class” and added that the workers would be retained under its new ownership.
Google buys Intersect Power
Not only do employee contracts appear to be retained, but Intersect is set to operate as a completely separate company from Google. The deal simply means that Intersect gets the tech giant’s financial backing and that Google Cloud’s data center strategy gets better support.
In the transfer, Google will also gain access to “several gigawatts of energy and data center projects under development or construction.”
“Intersect will help us expand capacity, work more nimbly to build new power generation in lockstep with new data center load, and reinvent energy solutions to drive American innovation and leadership,” Google CEO Sundair Pichai wrote.
In addition to entering into a strategic partnership with Google (before it is fully acquired), Intersect also has a notable partnership with Tesla, which is one of the company’s largest buyers of its Megapacks, securing 17.7 GWh of storage space.
However, some of Intersect’s assets in California and Texas will be excluded from the deal and will be spun off into a separate company. TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners (these projects’ investors) will continue to support these facilities.
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