Alphabet Announces $4.75 Billion Acquisition of Energy Startup Intersect to Fuel AI Expansion

The acquisition comes at a time of increasing tension regarding the environmental and financial impact of AI expansion.

RMN Digital Corporate Desk
New Delni | December 23, 2025

Alphabet, the parent company of Google, has reached an agreement to acquire Intersect, a San Francisco-based data center energy specialist, for $4.75 billion. This move is part of a strategic effort to secure the massive amounts of electricity required to operate the sprawling data centers—often referred to as “AI factories”—that power artificial intelligence technologies.

Deal Details and Operations

Alphabet is buying Intersect in its entirety after previously purchasing a stake in the startup a year ago. Prior to this acquisition, Intersect had raised $2.1 billion from Google and other early investors. The deal is expected to close during the first half of next year. Once the acquisition is finalized, Alphabet intends to let Intersect operate independently. Its primary mission will be to find ways to increase and diversify energy supplies to hold down power costs for the data centers utilized by Google and its competitors.

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Addressing Energy Demands and Public Concern

The acquisition comes at a time of increasing tension regarding the environmental and financial impact of AI expansion. In some areas, residents have expressed backlash over rising electricity bills, fearing they are footing the bill for a technology boom that could potentially “go bust”. Intersect is already working to address these needs through projects such as a data center for Alphabet in Haskell County, Texas.

The Business of AI

The race for energy is not unique to Alphabet; other industry players are exploring similar avenues, such as Trump Media’s recent merger with a nuclear fusion company intended to power AI. For Alphabet, the focus on artificial intelligence has already yielded significant financial results, with the company’s stock price increasing by more than 60% this year, generating an additional $1.4 trillion in shareholder wealth.