Alphabet to buy Intersect Power to bypass energy grid bottlenecks

Core Insights - Alphabet, Google's parent company, has agreed to acquire Intersect Power for $4.75 billion in cash, along with the assumption of the company's debt, to enhance its power generation capacity for data centers [1][2] - The acquisition aims to secure energy access critical for training AI models, as local utilities are struggling to meet the demand from AI companies [1][3] Group 1: Acquisition Details - The acquisition includes Intersect's future development projects but excludes its existing operations, which will be managed by other investors as a separate entity [2] - Alphabet previously held a minority stake in Intersect Power, participating in an $800 million funding round led by Google and TPG Rise Climate in December [2] Group 2: Future Developments - Intersect's new data parks, located next to renewable energy sources, are expected to be operational by late next year and fully completed by 2027 [3] - The transaction is anticipated to close in the first half of next year, with Google being the primary user of the new data parks [3]