What’s going on
- Alphabet, Google's parent company, has agreed to acquire Intersect Power for $4.75bn. Intersect develops utility-scale solar farms, battery storage, and transmission-related projects.
- The companies have not said when the transaction will close. The purchase price is $4.75bn.
- Intersect builds large projects that feed electricity into the grid. Its portfolio is designed to deliver large volumes of power, with batteries that can shift supply to different hours.
- Google has been expanding data centres that support AI computing, which uses large amounts of electricity. Alphabet has been seeking more reliable power arrangements to match that growth.
- The move goes beyond signing power purchase agreements, which many large companies already use. Buying a developer could give Alphabet more direct control over where new capacity gets built and when it comes online.
- No government approvals or regulatory decisions have been described publicly so far. In the US, large energy transactions can face reviews tied to competition, grid interconnection, and transmission planning, but any specific process for this deal remains unclear.
Why it matters
- The deal signals a shift in how large tech companies secure electricity. Owning or controlling generation and storage can reduce exposure to volatile power prices and shortages in key data-centre regions.
- It could also influence how quickly new clean power is added to the grid. If big buyers build projects for their own needs, utilities and other customers may face different timelines, costs, and competition for transmission access.