- Alphabet has agreed to buy US renewable energy firm Intersect Power as it seeks long-term electricity supply for data centres.
- The deal highlights how energy access is becoming a strategic issue for AI and cloud expansion.
What happened: Alphabet targets energy security to support AI expansion
Alphabet, the parent company of Google, has struck a deal to buy Intersect Power, according to reports, as it looks to secure large-scale sources of clean electricity. Intersect Power develops and operates solar and battery storage projects across the United States, supplying power to utilities and large corporate customers.
The acquisition reflects Alphabet’s rising electricity needs as it expands data centre capacity to support AI workloads and cloud services. Training and running advanced AI models require vast computing resources, which in turn place heavy demands on energy supply and grid stability.
Alphabet has previously said that power availability has become a limiting factor in how quickly it can build and operate new data centres. By bringing an energy developer in-house, the company aims to gain more direct control over project timelines, costs and long-term supply.
Intersect Power has built a portfolio focused on large-scale solar generation combined with energy storage, designed to provide reliable output even when renewable production fluctuates. While financial terms of the deal were not publicly disclosed, the move adds to Alphabet’s long-standing commitment to using carbon-free energy for its operations.
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Why it’s important
The acquisition signals a shift in how major technology firms approach infrastructure planning. Instead of relying solely on utilities and power purchase agreements, companies building AI platforms are increasingly moving upstream into energy development.
As AI adoption accelerates, competition for electricity is intensifying. Data centres already account for a growing share of power consumption in many regions, and AI-driven facilities are even more energy intensive. Securing predictable, low-carbon power is becoming as critical as access to chips and networking equipment.
For the renewable energy sector, deals like this highlight new demand drivers. Technology firms with strong balance sheets can provide long-term backing for large projects, potentially accelerating investment in solar and storage.
However, the trend also raises policy questions. Regulators and grid operators must balance the needs of hyperscale data centres with those of households and traditional industries. Alphabet’s move shows that energy strategy is now central to the future of AI, not a secondary consideration.
