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Google acquires Intersect Power to develop internal energy sources for data centers
Tuesday, February 10, 2026 at 11:49 AM
Google has acquired Intersect Power as part of a strategy to build its own electricity sources for its data centers. This follows previous deals for advanced nuclear and geothermal plants, aiming for a self-sufficient energy supply to support AI infrastructure and data center operations.
Context
Alphabet has entered a definitive agreement to acquire renewable energy developer Intersect Power for approximately $4.75 billion in cash and assumed debt. The transaction, expected to close in the first half of 2026, represents a fundamental shift in the AI supply chain as Google move beyond third-party purchase agreements to bring electricity generation directly in-house. Through this deal, Google gains control over a 3.6-gigawatt pipeline of solar and wind projects and 3.1 gigawatt-hours of battery storage, securing the infrastructure needed to support its massive AI scaling.
This "soup-to-nuts" strategy allows Google to develop "energy parks" that co-locate data centers with on-site power sources, bypassing grid bottlenecks and interconnection queues that can last five to seven years. The move is a critical response to generative AI energy demands, which consume nearly 10x more power per query than traditional search. By integrating generation into its core business, Google builds upon its early lead in advanced nuclear and geothermal energy, becoming the first hyperscaler to own the entire energy lifecycle required for its global data center operations.
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