Alphabet has signed a definitive agreement to acquire Intersect for $4.75 billion in cash plus assumed debt, folding a clean‑energy‑and‑data‑center developer deeper into Google’s U.S. infrastructure plans amid what Google and energy agencies describe as growing power‑availability constraints for new data center capacity.

In its investor release, Alphabet said the deal brings in Intersect’s team and multiple gigawatts of energy and data center projects that are “in development, or under construction” from Intersect’s existing partnership with Google, and that Intersect will remain a separate brand led by founder and CEO Sheldon Kimber.

Alphabet also said Intersect will work closely with Google’s technical infrastructure organization, including their first co-located data center and power site now under construction in Haskell County, Texas.

Alphabet said Intersect’s operating assets in Texas and its operating and in-development assets in California are excluded and will continue as an independent company backed by existing investors TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners. The transaction is expected to close in the first half of 2026, subject to customary conditions.

The acquisition builds on a partnership Intersect announced in December 2024 with Google and TPG Rise Climate, positioned around co-locating new data center load with clean power generation and storage.

Intersect said that the partnership included a more than $800 million funding round led by TPG Rise Climate and Google, and targeted $20 billion in renewable power infrastructure investment by the end of the decade.

Google has framed the strategy as a response to U.S. grid bottlenecks: in its December 2024 post, the company cited research showing that the typical time from proposal to construction for U.S. power projects has more than doubled, rising from under two years (2000–2007) to more than four years (2018–2023).

The Lawrence Berkeley National Laboratory’s interconnection-queue analysis, similarly finds that the queue of proposed generation and storage projects has grown and that interconnection timelines have lengthened.

Separately, the International Energy Agency has warned that grid connection queues and long lead times for transmission are emerging constraints for data center expansion, estimating that around 20% of planned global data center capacity could face delays by 2030 if grid constraints persist.

In the U.S., the Energy Information Administration’s December 2025 Short-Term Energy Outlook said power-sector electricity generation growth in 2025–2026 is being driven “primarily” by rising demand from large customers, including data centers, concentrated in ERCOT and PJM regions.

Power demand uncertainty is also driving planning assumptions. In its May 2024 “Powering Intelligence” analysis, EPRI modeled multiple scenarios in which U.S. data centers’ share of total electricity consumption in 2030 ranges up to about 9% under higher-growth assumptions, while noting that demand is concentrated in a limited set of states.

Alphabet says partnering with Intersect will “bring more data center and generation capacity to come online, faster,” with CEO Sundar Pichai saying Intersect will help Google “build new power generation in lockstep with new data center load.”