Alphabet, Google’s parent company, has announced the acquisition of Intersect, a data centre developer with a strong focus on clean energy, in a deal valued at $4.75 billion. The move highlights Google’s growing need for reliable electricity as artificial intelligence workloads place increasing pressure on its infrastructure.

Google continues to draw the bulk of Alphabet’s revenue through its search business and cloud services, both of which are becoming more energy-intensive. The company first invested in Intersect last year, taking a stake in the San Francisco-based firm before deciding to buy it outright. The acquisition gives Google more direct control over the power sources that feed its expanding network of AI-driven data centres.

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By bringing Intersect in-house, Alphabet will own and develop clean energy assets tied closely to its computing needs. Sundar Pichai, Alphabet’s chief executive, said the deal would allow the company to move faster and plan power generation alongside new data centre capacity. “Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data centre load, and reimagine energy solutions to drive US innovation and leadership,” he said.

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One of the first visible projects under this partnership is a combined data centre and power facility in Haskell County, Texas, where Google and Intersect are already working together. The transaction is expected to close in early 2026, pending regulatory approvals. Intersect will continue to operate as a separate business within Alphabet, maintaining its existing structure while supporting Google’s long-term energy and infrastructure plans.