Google locks in new energy reserves for its AI expansion

Google is ramping up its AI infrastructure with a major energy acquisition. Parent company Alphabet is buying clean energy developer Intersect for $4.75 billion in cash, plus assumed debt.

Alphabet is acquiring Intersect's energy and data center projects that are currently under development or construction. The company holds assets worth $15 billion. By 2028, projects with roughly 10.8 gigawatts of capacity should be online—more than twenty times the electricity output of the Hoover Dam, as Reuters reports. Intersect will continue to operate separately from Alphabet. Existing plants in Texas and California aren't part of the deal.

The deal reflects a broader trend: big tech companies are pouring money into energy assets as US power grids struggle to keep pace with soaring electricity demand from artificial intelligence. Google says it plans to double its AI capacity every six months, aiming for a thousandfold increase in output within four to five years. To hit those targets, Google is also investing in advanced reactor technology.