Google buys Intersect for $4.75B to power AI growth

Alphabet, Google's parent company, is making a decisive $4.75 billion move to address the critical power shortage constraining artificial intelligence growth by acquiring energy infrastructure firm Intersect, Channel Insider reports.

The acquisition, set to close in the first half of 2026, aims to remove electricity as a primary bottleneck for expanding AI data center capacity. Google CEO Sundar Pichai stated the deal will help the company "expand capacity, operate more nimbly in building new power generation in lockstep with new data center load."

The core challenge is that advanced AI chips require immense power, and traditional grid development cannot keep pace. Intersect's model of developing utility-scale renewable energy and battery storage projects co-located with data centers provides a solution, allowing power and compute infrastructure to be planned simultaneously.

Intersect CEO Sheldon Kimber emphasized the urgency, noting, "AI today is stuck behind one of the slowest, oldest industries in the country: electric power."