As the global tech giants engage in a frenzied race for AI computing power, a more fundamental battle over “energy supply” is unveiling. Google’s multi-billion dollar power play procured not just an energy storage company but the the “electricity passport” towards the AI-driven future.
I. Blockbuster Acquisition: Acquisition of U.S. Energy Storage Giant for $4.75 Billion
On December 22, Alphabet, Google's parent company, announced that it will acquire Intersect Power, a leading U.S. battery energy storage system developer and operator, for $4.75 billion in cash plus the assumption of debt.
What to watch：
Targeted Assets: The acquisition does not cover the already operational assets but targets its future clean energy power generation projects, data center and energy storage system, totaling 10GWh.
Strategic intention: directly circumvent the crowded traditional grid and build an exclusive “power generation + energy storage” closed loop for AI data center.
The Alphabet CEO said: “ Intersect will help us synchronize the creation of power generation and energy storage system so as to match the added data center load and reshape energy solutions of AI data center.
II. Urgency: The high energy consumption “black hole” of AI data center
It is the tremendous energy pressure alongside generative AI behind the acquisition.
Surge in electricity consumption: the electricity demand is estimated to grow manyfold of data center hubs including State of Texas and California in 2030.
Stringent Reliability requirement: The AI data center requires 99.999% power supply reliability, which is hard to satisfy for traditional grid.
Solutions: Battery Energy Storage System emerges as the key infrastructure to balance the intermittency of renewable energy and achieve 24/7 uninterrupted power supply.
III. Ecological Synergy: Tesla makes an indirect play and broaden the collaboration zone
It is noteworthy that Intersect and Tesla are long-term collaboration partners. Google’s move means Tesla will step into the collaboration zone.
Current collaboration: Many operational energy storage projects of Intersect have employed the Megapack energy storage system of Tesla (like the Oberon 1 GWh project of California)
A huge order: Intersect also signed the 15.3GWh supply contract with Tesla, becoming one of the world’s largest purchasers and operators of this model of energy storage equipment.
IV. Chinese Companies: A head start in the Global data center energy storage arena
In fact, China’s top-tier energy storage companies have identified the opportunities early on, actively expanding their presence in the global “data center + energy storage” sector:
Companies like SUNGROW, SHUANGDENG, HUAWEI, KWLONG, ZTT, NARADA, HTHIUM, ROBESTEC, Potis Edge, Ampace, CLOU, Hopewind, CHNT, KSTAR, Vertiv, DELTA, EATON, VISION, SINEXCEL, JST(JINPAN TECHNOLOGY), TONGFEI, Envicool, Goaland, Shenling, HAIWU and so on has played their respective roles engaging in data center energy construction.
The market demonstrates that China’s supply chain ranging from power sources, battery to management system is becoming an important power to underpin the global AI data center energy transformation.
V. Industry Barometer: the summit forum focuses on “data center + energy storage” future
Google’s acquisition does not stand alone and it points to a global trend: energy storage combined with data center has become the central arena where global technology and energy industry converge.
This trend will be fully represented in the upcoming industry grand.
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Register now to attend Asia's Largest Energy Storage Trade Show for free:
What: The 14th Energy Storage International Conference & Expo
When: Conferences: March 31 - April 2, 2026
Exhibitions: April 1-3, 2026
Where: CIECC Beijing, China
Address: No. 55 Yudong road, Shunyi District, Beijing China
