Google’s AI Ambition Demands More Power — And It’s Buying This Company to Fuel Its Data Centers

Google just made a power play—literally. The tech giant is snapping up a major energy company to keep its AI engines running.

Why the sudden move? Simple: artificial intelligence is a power hog. Training models like Gemini or powering Search’s AI features burns through electricity at a staggering rate. Data centers, once just big server warehouses, are now industrial-scale energy consumers.

Google’s strategy? Vertical integration. Instead of just buying power off the grid, it’s buying the source. This acquisition secures a dedicated, scalable energy supply—likely focused on renewables or next-gen nuclear—to future-proof its AI expansion. It’s a hedge against volatile energy markets and a bid to keep its sustainability promises intact.

The financial angle? Classic Big Tech. Use your war chest to buy the infrastructure you need, lock in long-term cost advantages, and create a moat competitors can’t easily cross. For the energy company’s shareholders, it’s a nice exit. For Google, it’s just another line item in the capex budget—a rounding error on the path to AI dominance.

One cynical take? It’s the ultimate ‘solve it with money’ move. When your product demands more energy than some small countries, you don’t just build more data centers—you buy the power plants, too. The rest of us just watch our utility bills climb.

Key Takeaways

• Google parent Alphabet said Monday it's buying energy infrastructure provider Intersect for $4.75 billion.
• CEO Sundar Pichai said the purchase will boost the firm's ability to meet the power needs of AI data centers.

Google parent Alphabet just struck another big energy deal aimed at growing its AI data center footprint.

Alphabet (GOOGL) said Monday it's buying energy infrastructure provider Intersect for $4.75 billion to help support its data center buildout.

CEO Sundar Pichai said the purchase of Intersect, which Google had already owned a stake in through a previous funding round, “will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership.”

Why This Is Significiant

Like many of its Big Tech peers, Alphabet has said it plans to spend billions of dollars to raise its AI capacity. Monday's deal underscores how that could involve buying other companies, as well as more partnerships.

Alphabet said its deal with Intersect WOULD also serve its commitment to "unlock abundant, reliable, affordable energy supply that enables the buildout of data center infrastructure without passing on costs to grid customers.”

Related Education

Alphabet shares were up less than 1% in recent trading. They've added nearly two-thirds of their value in 2025 as revenues surged, thanks in part to gains from AI.