Intersect Power supply chain to bypass power grid barriers

Google parent Alphabet has agreed to buy Intersect Power, a data center and clean energy developer, about $4.75 billion in revenue including consideration of the company’s debt.

The acquisition, announced on Monday, will help Alphabet expand its power generation capacity along with new data centers without relying on local infrastructure that is struggling to meet the demands of the AI ​​industry. Gaining access to the power that powers data centers has become an important part of training AI models.

Alphabet previously held a minority stake in Intersect Power after Google and TPG Rise Climate led the group. $800 million strategic funding round in the company last December. The agreement set a target of $20 billion in total sales by 2030.

The acquisition includes Intersect’s future development activities, but does not include its existing operations, which will be purchased by other investors and run as a separate company.

Intersect’s new data parks, based around wind, solar, and battery power, are expected to be operational by the end of next year and completed by 2027, Google said when he announced his low income.

The project is expected to close in the first half of next year.

Google will be more user friendly. However, the Intersect campus was designed as an industrial park that could receive chips from other AI companies including Google.