In a move that says as much about energy as it does about artificial intelligence, Alphabet has agreed to acquire clean-energy and data-center infrastructure developer Intersect for approximately $4.75 billion, according to Reuters. The deal underscores a growing reality in Big Tech: the future of AI will be constrained not by algorithms but by electricity.

AI’s Hidden Bottleneck: Energy

Generative AI models require vast computing power, and that power demands massive, reliable electricity supplies. Training and running large models consumes exponentially more energy than traditional cloud workloads. As AI adoption accelerates, so does pressure on regional power grids.

By acquiring Intersect, Google isn’t just buying assets it’s securing direct access to clean energy generation and grid capacity, a critical advantage as competition for power intensifies across the tech sector.

Why Intersect Matters

Intersect specializes in large-scale clean energy projects closely tied to data-center infrastructure. This vertical integration allows Google to:

• Lock in long-term energy supply for AI data centers
• Reduce exposure to grid congestion and energy price volatility
• Advance its net-zero and sustainability commitments
• Build AI infrastructure faster without waiting on utilities or regulators

In short, Google is removing friction from one of AI’s biggest growth constraints.

A Strategic Shift in Big Tech

This acquisition reflects a broader industry shift. Tech giants are no longer content with power purchase agreements alone. Instead, they are owning or tightly controlling energy infrastructure to support hyperscale AI operations. Energy security is becoming as strategic as semiconductor supply chains.

For Google, the move strengthens its competitive position against rivals racing to scale AI platforms, cloud services, and enterprise tools each requiring unprecedented amounts of electricity.

The Bigger Picture

The Intersect deal highlights a critical truth: AI dominance will increasingly belong to companies that can secure power at scale. As AI reshapes productivity, creativity, and commerce, energy availability may quietly decide who leads and who falls behind.

Google’s message is clear: the AI race isn’t just about smarter models. It’s about who can keep the lights on.