Google, through its parent company Alphabet, is preparing to make a strategic acquisition by purchasing Intersect, a pioneering company in the colocation of data centers and power plants. This bold move, valued at over 4 billion euros, could transform the way the Californian giant manages its energy consumption, a necessity in the face of the continuous increase in its electricity needs, particularly to power its artificial intelligence technologies.
The 3 key points not to miss
- Alphabet, Google’s parent company, plans to acquire Intersect for more than 4 billion euros, including debt.
- This acquisition aims to establish energy independence by building data centers in close proximity to power plants.
- Google plans to use innovative technologies such as geothermal energy and giant batteries to improve its energy supply.
The stakes of acquiring Intersect
Alphabet has announced its intention to acquire Intersect, a company specializing in the colocation of energy and digital infrastructures, for an amount of 4.75 billion dollars. This acquisition will allow Google to better manage its growing energy needs by directly integrating electricity production into its data center facilities.
Intersect stands out for its unique model: it builds data centers directly next to power plants, allowing for gigawatts of capacity without overloading the public grid. This innovative approach appeals to Google, which wants to become the exclusive owner of the company.
Google’s future projects with Intersect
The partnership between Google and Intersect is already taking shape with a concrete project in Haskell County, Texas. On this site, the two companies are collaborating to build an adjacent power plant and data center. This proximity will allow for the direct supply of energy needed to operate Google’s artificial intelligence services.
Google CEO Sundar Pichai stated that this integration will facilitate a more agile operation of their infrastructures, by simultaneously building power production and data centers.
Innovative technologies for a sustainable energy future
Google is not content with gas-fired power plants for its energy needs. The company is exploring cutting-edge technologies, such as next-generation geothermal energy, giant batteries for long-term storage, and natural gas associated with carbon capture.
These initiatives aim to increase the U.S. energy supply without increasing costs for consumers, in a context where power grids are already under pressure.
The contribution of artificial intelligence
Google is also using its artificial intelligence algorithms to accelerate the connection of new energy installations. This approach optimizes the construction of power plants that will fuel artificial intelligence technologies, creating a loop of energy efficiency.
The completion of the Intersect acquisition is scheduled for the first half of 2026, subject to regulatory approvals. In the meantime, Intersect’s sites in California and Texas will continue to operate independently, supported by other investors.
Context: Intersect and its advances in the energy sector
Founded by Sheldon Kimber, Intersect is an American company specializing in the colocation of data centers and power plants. This company has been a pioneer in creating energy models that combine efficiency and sustainability, with 15 billion dollars in assets in operation or development in the United States.
Intersect has established itself as a key player by offering innovative solutions to reduce pressure on power grids while increasing energy capacity. The acquisition by Google marks a new step in its growth and influence in the global energy sector.
