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Big Tech's power grab: the race to build private energy empires

Big Tech's power grab: the race to build private energy empires

New Capabilities
By Newzino Staff | |

How AI's appetite for electricity is forcing tech giants to become power companies

January 9th, 2026: Meta Announces Nuclear Deals Unlocking Up to 6.6 GW for AI Data Centers

Overview

Google spent $4.75 billion over a year ago to acquire Intersect Power, owning the power plants feeding its AI data centers. Amazon bought a nuclear-powered campus in Pennsylvania. Microsoft restarted Three Mile Island in September 2024. Now Meta has announced nuclear deals unlocking up to 6.6 gigawatts—through partnerships with Vistra, TerraPower, and Oklo—to power American AI leadership. Tech giants aren't just buying electricity. They're securing or building the grid themselves.

AI's electron wall persists: data centers will consume 426 terawatt-hours by 2030—more than double today's use and equivalent to adding another California to the grid. With utility transmission queues still stretching years, tech companies continue vertical integration, co-locating power plants next to server farms. Meta's January 2026 commitments extend existing plants, fund advanced reactors like Natrium and Aurora, and add over 10 gigawatts in combined tech nuclear capacity. The rush to power AI is reshaping U.S. infrastructure—and who controls the electricity.

Key Indicators

$4.75B
Alphabet's Intersect Power acquisition
Largest tech-energy deal to date, includes multiple gigawatts of co-located generation capacity
426 TWh
Projected U.S. data center demand by 2030
133% increase from 2024, equivalent to 4% of total U.S. electricity consumption
5 years
Average grid interconnection wait time
Up from 2-3 years in early 2020s; transmission bottlenecks forcing alternative strategies
16+ GW
Combined nuclear capacity committed by tech
Amazon, Google, Microsoft, Meta ordering small modular reactors and uprates through 2040; Meta adds up to 6.6 GW
90 days
Time from FERC rejection to new strategy
Google pivoted to full Intersect acquisition after November 2024 regulatory setback

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People Involved

Sheldon Kimber
Sheldon Kimber
Founder and CEO, Intersect Power (Leading Intersect post-acquisition, continuing as CEO under Google ownership)
Sundar Pichai
Sundar Pichai
CEO, Google and Alphabet (Overseeing Google's pivot to power-first data center infrastructure)
Joel Kaplan
Joel Kaplan
Chief Global Affairs Officer, Meta (Announcing Meta's major nuclear energy commitments)

Organizations Involved

Intersect Power
Intersect Power
Energy Infrastructure Developer
Status: Acquired by Alphabet for $4.75B; operating as independent subsidiary

Houston-based developer pioneering co-located data center and power generation infrastructure.

Alphabet Inc.
Alphabet Inc.
Technology Conglomerate
Status: Acquiring Intersect Power to secure energy infrastructure for AI expansion

Google's parent company, now vertical integrating into power generation to fuel AI data centers.

Federal Energy Regulatory Commission (FERC)
Federal Energy Regulatory Commission (FERC)
Federal Agency
Status: Regulating data center co-location and behind-the-meter power arrangements

Independent agency overseeing interstate electricity transmission and wholesale power markets.

Amazon Web Services (AWS)
Amazon Web Services (AWS)
Cloud Infrastructure Provider
Status: Pursuing nuclear power partnerships after FERC setback; invested $500M in X-energy SMRs

Amazon's cloud division, targeting 5 GW of small modular reactor capacity by 2039.

Microsoft
Microsoft
Technology Company
Status: Restarting Three Mile Island Unit 1 under 20-year power purchase agreement

Cloud and AI provider securing 837 MW of nuclear power to fuel data centers.

Meta Platforms
Meta Platforms
Public Technology Company
Status: Securing up to 6.6 GW nuclear capacity via Vistra, TerraPower, Oklo deals

Parent of Facebook, Instagram; accelerating nuclear partnerships to fuel AI data centers.

Timeline

  1. Meta Announces Nuclear Deals Unlocking Up to 6.6 GW for AI Data Centers

    Nuclear Partnership

    Meta signs agreements with Vistra (2.1+ GW uprates at Ohio/Pennsylvania plants), TerraPower (up to 2.8 GW Natrium reactors by 2035), and Oklo (1.2 GW Ohio campus by 2034). Positions Meta as one of largest corporate nuclear purchasers to power AI infrastructure.

  2. Alphabet Acquires Intersect Power for $4.75 Billion

    Acquisition

    Google parent company announces definitive agreement to buy Intersect, securing multiple gigawatts of co-located generation and data center projects. Deal includes Haskell County, Texas facility. Intersect to operate independently under CEO Sheldon Kimber. Closing expected H1 2026.

  3. Google Announces Project Suncatcher Orbital Data Centers

    Innovation

    Sundar Pichai reveals plans for solar-powered data centers in Earth orbit, launching pilot satellites in 2027. Signals tech industry exploring every avenue—terrestrial and extraterrestrial—to solve AI's power crisis.

  4. Google and TPG Lead $800M Investment in Intersect Power

    Investment

    Strategic partnership announced targeting gigawatts of co-located data center and renewable generation capacity. Google becomes anchor tenant for Intersect's power-first development model, catalyzing $20B infrastructure investment by 2030.

  5. FERC Rejects Amazon's Expanded Nuclear Co-Location Deal

    Regulatory

    Federal regulators reject PJM request to expand Amazon's Susquehanna nuclear plant power from 300 MW to 480 MW. 2-1 vote cites concerns about cost-shifting to ratepayers and inadequate grid protection. Industry pivots strategy.

  6. Google and Amazon Announce Major Nuclear Commitments

    Nuclear Partnership

    Google orders 500 MW across 6-7 Kairos Power molten salt reactors, first corporate SMR purchase. Amazon invests $500M in X-energy, commits to 5 GW capacity by 2039. Nuclear becomes Big Tech's preferred long-term solution.

  7. Microsoft Signs Deal to Restart Three Mile Island

    Nuclear Partnership

    Constellation Energy announces 20-year power purchase agreement with Microsoft to restart Unit 1 of Three Mile Island nuclear plant, delivering 837 MW starting 2028. First major tech-nuclear deal signaling industry shift.

Scenarios

1

Vertical Integration Becomes Industry Standard by 2030

Discussed by: Goldman Sachs Research, Bloomberg Energy, Grid Strategies LLC

Tech companies own or control 15-25% of new U.S. generation capacity by 2035. What began as necessity becomes competitive advantage: companies with captive power deploy AI faster than grid-dependent rivals. Utilities face existential crisis as their largest customers become competitors. Regulators approve standardized behind-the-meter frameworks after initial resistance. Small modular reactors prove commercially viable at scale. Legacy coal and gas plants find new life powering hyperscalers. The grid fragments into two tiers—public utility serving residential and commercial loads, private infrastructure serving industrial AI. Energy becomes as strategic to tech business models as semiconductors.

2

Regulatory Crackdown Forces Divestiture of Power Assets

Discussed by: Harvard Law School environmental policy researchers, utility industry advocates

Concerns about market power, ratepayer cost-shifting, and grid reliability trigger antitrust scrutiny. Senators Elizabeth Warren and others demand investigations into whether tech giants are unfairly burdening public grids while privatizing generation. FERC tightens co-location rules, imposing strict cost allocation and reliability requirements that make behind-the-meter arrangements economically unattractive. States pass laws requiring data centers to pay full transmission costs regardless of generation ownership. Companies forced to sell power assets or structure them as regulated utilities with public service obligations. The vertical integration wave stalls, and tech returns to traditional power purchase agreements with independent generators.

3

Grid Modernization Catches Up, Eliminating Need for Private Infrastructure

Discussed by: Energy innovation analysts, transmission developers

Massive federal infrastructure investment—$720 billion through 2030 per Goldman estimates—transforms grid capacity. Streamlined permitting, AI-optimized load balancing, and battery storage expansion eliminate interconnection backlogs. High-voltage DC transmission lines connect renewable-rich regions to data center hubs. Utilities successfully compete for hyperscaler loads by offering competitive pricing and fast deployment. Tech companies abandon costly vertical integration efforts, selling power assets to focus on core computing business. Intersect-type acquisitions prove strategic dead ends as grid constraints that motivated them disappear. Power and computing return to separate industries.

4

Nuclear Renaissance Fails, Forcing Renewed Fossil Dependence

Discussed by: Nuclear industry skeptics, environmental groups concerned about timelines

Small modular reactors miss deployment targets. Kairos, X-energy, and other vendors hit licensing delays, cost overruns, and technical setbacks. First commercial units slip from 2030 to mid-2030s. Restarting mothballed plants like Three Mile Island proves more expensive than projected. Desperate for reliable baseload, tech companies pivot to natural gas co-generation—cleaner than coal but far from carbon-neutral. Climate commitments collide with AI ambitions. Public backlash grows as data centers drive up emissions after years of decline. Companies face choice: throttle AI growth or abandon sustainability pledges. The energy transition stalls as AI's appetite overwhelms renewable supply.

Historical Context

Standard Oil's Vertical Integration (1870-1911)

1870-1911

What Happened

John D. Rockefeller built Standard Oil by controlling every stage of oil production—extraction, refining, transportation, and distribution. He acquired pipelines, railroad cars, and barrel-making plants, eliminating dependence on outside suppliers. By 1880, Standard controlled 90% of U.S. refining capacity through this integrated model.

Outcome

Short Term

Massive cost advantages allowed Standard to undercut competitors and dominate markets.

Long Term

Antitrust prosecution broke company into 34 pieces in 1911, but vertical integration became industry standard.

Why It's Relevant Today

Google's Intersect acquisition mirrors Rockefeller's logic: if you can't buy the input reliably, own the supplier. The question is whether regulators will again view such integration as anticompetitive.

Carnegie Steel's Iron Ore Integration (1889-1901)

1889-1901

What Happened

Andrew Carnegie bought Minnesota's Mesabi iron ore mines, coal fields, coke ovens, river barges, and railroads to control steelmaking from raw materials to finished rails. By 1900, he owned one-quarter of global steel production through complete vertical integration.

Outcome

Short Term

Cost control and supply security allowed Carnegie to dominate the steel industry and underprice rivals.

Long Term

Sold to J.P. Morgan for $480 million in 1901, becoming U.S. Steel; integration model persisted for decades.

Why It's Relevant Today

Tech companies are applying Carnegie's playbook to electricity: own the 'mines' (power plants) because the 'transportation network' (grid) can't deliver at the speed and scale AI demands.

Aluminum Industry Self-Generation (1950s-Present)

1950s-Present

What Happened

Aluminum smelting requires massive, continuous electricity—making power the industry's largest cost. Companies like Kaiser built dedicated gas-fired plants on-site. Today, 55% of global aluminum industry power is self-generated, rising to 95% in parts of Asia, because grid dependence introduces cost and reliability risk.

Outcome

Short Term

On-site generation became competitive necessity; companies without captive power struggled on cost.

Long Term

Vertical integration into power became industry standard; energy access remains strategic constraint.

Why It's Relevant Today

AI data centers are the new aluminum smelters—energy-intensive operations where power availability determines viability. Intersect acquisition suggests tech is following aluminum's century-old path to self-generation.

13 Sources:
+7
Alphabet Investor Relations TechCrunch TPG CNBC Foley & Lardner LLP Goldman Sachs Research International Energy Agency Introl LandGate Fortune Meta Carbon Credits NucNet