Alphabet, the parent company of Google, has announced the acquisition of Intersect Power, a data center and clean energy developer, for $4.75 billion in cash, along with assuming the company’s debt. This strategic move aims to enhance Alphabet’s power-generation capacity for its data centers, allowing them to operate independently of local utilities that are struggling to meet the growing demands of AI companies.
Alphabet previously held a minority stake in Intersect Power, and the latest acquisition follows a successful $800 million funding round led by Google and TPG Rise Climate last year. The partnership’s long-term goal is to reach $20 billion in total investment by 2030. The acquisition encompasses Intersect’s upcoming development projects, excluding its current operations, which will be taken over by other investors and run as a separate entity.
Intersect’s innovative data parks, strategically located near renewable energy sources like wind, solar, and battery power, are projected to be operational by late next year and fully operational by 2027. Google, the primary beneficiary of the acquisition, plans to utilize these campuses designed as industrial parks to accommodate not only its AI chips but also those of other companies.
The transaction is anticipated to be finalized in the first half of the upcoming year, marking a significant step for Alphabet in ensuring sustainable and reliable power sources for its expanding data infrastructure.
Source: TechCrunch
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