• Two California projects will receive tax equity commitments from Morgan Stanley Renewables upon completion
• TPG Rise, as majority shareholder, others will own company carved out of deal including operational TX assets and under-development CA assets

This story was updated from a story filed on December 22 to include Intersect Power’s advisors on the deal, plus details of a FERC filing which disclosed Morgan Stanley Renewables as a tax equity investor on two of the company’s California projects.

Alphabet has entered a definitive agreement to acquire Intersect Power (IP) for USD 4.75bn in cash, plus the assumption of debt, according to a news release.

Google already owns a minority stake in Intersect from a previously announced funding round.

Morgan Stanley, JP Morgan, BofA Securities served as financial advisor to Intersect Power in relation to the transaction and Orrick, Herrington & Sutcliffe LLP acted as legal counsel, NPM has learned. Regulatory filings today also indicated that Morgan Stanley Renewables made a tax equity commitment to two of IP’s California projects.

The acquisition will enable more data center and generation capacity to come online, faster, while accelerating energy development and innovation.

Included in the transaction are Intersect’s team and multiple gigawatts of energy and data center projects in development, or under construction, from its existing partnership with Google. Intersect will also explore a range of emerging technologies to increase and diversify energy supply, while supporting Google’s US data center investments to meet its Cloud customers’ and users’ demand.

Intersect’s operations will remain separate from Alphabet and Google under the Intersect brand and will be led by Sheldon Kimber. It will partner closely with Google’s technical infrastructure team, continuing work on in-development, and new, joint projects; this includes the companies’ first announced co-located data center and power site, under construction in Haskell County, Texas.

NPM has also reported on an Intersect data center project in Gray County, Texas.

Intersect’s existing operating assets in Texas, and its operating and in-development assets in California, will not be part of the acquisition. IP founder Sheldon Kimber said in a blog post earlier today that the company’s existing investor–TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners—will acquire those assets and run it as separate company.

Intersect expects a seamless transition and service continuity for customers of those assets.

Investor Base

Prior to today’s transaction, IP raised equity across multiple founding rounds as it built up a utility-scale solar-and-storage portfolio, used its power generation development remit to initially support green hydrogen as the next steps, then pivoted to building power co-located with data centers.

IP raised USD 127m in equity with Climate Adaptive Infrastructure and the-then Trilantic (now Greenbelt Capital Partners) along with a USD 482m debt facility with Generate Capital and CarVal in January 2021. Approximately 18 months later, IP raised an additional USD 750m in growth equity with TPG Rise Climate as a new investor, alongside incumbents CAI and Greenbelt with a plan which included 1 GW of green hydrogen production, according to the June 2022 announcement.

IP would then announce in December 2024 a new USD 800m funding round which resulted in Google taking a stake in the business and where the incumbents TPG Rise, CAI and Greenbelt re-enlisted, this time putting forward a focus on co-locating new data centers with renewable power generation and storage facilities.

TPG Rise, as the majority shareholder, CAI and Greenbelt will now own an independent company carved out of the Alphabet deal, which includes IP’s existing Texas assets and in-development assets in California.

Portfolio

Two in-development California projects under the IP umbrella disclosed an update today which included the disclosure that Morgan Stanley Renewables agreed to provide a tax equity commitment for both phases of the Easley project and its Aramis project upon expected 2026 completion on all three projects.

This news was included in a section 205 filing required so each project can make sales of energy, capacity and certain ancillary services under a market-based rate tariff.

Aramis is a 100 MWac co-located solar PV project with battery energy storage systems (BESS) in Alameda County. The project is expected to commence test sales from the project on or before March 20, 2026 and it will achieve commercial operation by July 31, 2026.

Approximately 75 MW of the solar PV and BESS is committed under a long-term PPA with the City and County of San Francisco and 25 MW of resource adequacy is sold to Ava Community Energy Authority under a long-term PPA, while the remaining 25 MW of solar PV and BESS energy is sold in the CAISO market.

NPM reported over the summer that IP locked in USD 131m in construction financing to support the project

Easley: 145 MWac solar PV and 175 MW BESS project in Riverside County. The project will commence test sales from the BESS project on or about February 17 and achieve commercial operation by May 11, 2026. The energy output of the solar PV portion of Easley is fully committed under long-term PPAs with ACEA, Merced Irrigation District and Southern California Edison.

Easley II: 145 PV solar and 175 MW BESS project in Riverside County. The project will commence test sales from the PV portion of the project on or about February 17, 2026 and will achieve commercial operation by September 15; commence test sales on the BESS portion on or before February 17, 2026 and COD by May 11, 2026. The energy output of the solar PV portion is fully committed under long-term PPAs with ACEA, CleanPower SF and SCE, while the BESS portion is uncommitted.

NPM reported exclusively over the summer that IP signed a USD 1.2bn non-course financing package over the summer to support the paired Easley complex.

NPM Interconnection queue data shows that Intersect Power has 44 pre-operational clean energy projects across 18.39 GW, of which seven projects across 3.7 GWs have reached an advanced stage.