Alphabet to Buy Intersect Power to Bypass Energy Grid Bottlenecks
Google parent Alphabet has agreed to buy Intersect Power, a data center and clean energy developer, for $4.75 billion in cash and the assumption of the company’s debt.
The acquisition will help Alphabet expand its power-generation capacity alongside new data centers without relying on local utilities that are struggling to keep up with the demand of AI companies.
Securing access to energy that powers data centers has become a critical part of training AI models.
Acquisition Details
The acquisition includes Intersect’s future development projects but excludes its existing operation, which will be bought out by other investors and managed as a separate company.
Intersect’s new data parks, which are essentially locations next to wind, solar, and battery power, are expected to be operational late next year and fully completed by 2027.
The transaction is expected to close in the first half of next year.
Future Plans
Google will be the primary user of Intersect’s campuses, but they are designed as industrial parks that can host other companies’ AI chips alongside Google’s.
This acquisition marks a significant step in Alphabet’s efforts to expand its power-generation capacity and reduce its reliance on local utilities.
Conclusion
The acquisition of Intersect Power is a strategic move by Alphabet to secure access to energy that powers its data centers and AI models.
This move will help Alphabet expand its power-generation capacity and reduce its reliance on local utilities.
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