- 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
- Certain California and Texas assets are not included and will form a new company
Alphabet announced the acquisition of Intersect Power for $4.75 billion in cash to 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 following approximately $800 million in funding earlier in 2024, but its full buyout is expected to be completed in the first half of 2026.
In a statement, Google’s parent company called Intersect’s team “world-class,” adding that workers would be retained under its new ownership.
Google acquires Intersect Power
Not only do employee contracts appear to be preserved, but Intersect is expected to operate as a completely separate company from Google. The deal simply means Intersect will get financial backing from the tech giant and Google Cloud’s data center strategy will get better support.
During this transfer, Google will also have access to “several gigawatts of energy and data center projects in development or construction.”
“Intersect will help us expand our capacity, operate with more agility to build new power generation in step with the new data center load, and reimagine energy solutions to drive U.S. innovation and leadership,” wrote Google CEO Sundair Pichai.
Besides entering into a strategic partnership with Google (before being fully acquired), Intersect also has a notable partnership with Tesla, being one of the largest buyers of its Megapacks from the company, securing 17.7 GWh of storage.
However, some of Intersect’s assets in California and Texas will be excluded from the deal and will be consolidated into a separate company. TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners (the investors in these projects) will continue to support these facilities.
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