Alphabet, the parent company of Google, has announced plans to acquire Intersect, a data center and energy infrastructure specialist, for $4.75 billion in cash, along with the assumption of debt. The strategic acquisition is designed to significantly accelerate the build-out of data center and power-generation capacity supporting Google’s rapidly growing AI and cloud businesses.
Alphabet stated that Intersect will continue to operate as an independent entity while working closely with Google’s technical infrastructure teams to bring new capacity online at greater speed and scale. Google already held a minority stake in Intersect following a funding round announced in December, which targeted the development of multiple gigawatts of data center capacity across the United States, alongside substantial investments in renewable energy.
The move comes as competition for AI infrastructure intensifies, particularly with OpenAI committing more than $1.4 trillion toward expanding data center and compute capabilities. By securing tighter control over power and infrastructure assets, Alphabet aims to ensure it can meet surging demand for AI workloads.
“Intersect will help us expand capacity, operate more nimbly, and reimagine energy solutions to drive U.S. innovation and leadership,” said Sundar Pichai, CEO of Google and Alphabet.
Intersect will also collaborate on key projects, including a co-located power and data center site in Haskell County, Texas, aligning with Google’s previously announced $40 billion investment in the state through 2027. The transaction is expected to close in the first half of 2026, subject to customary regulatory approvals.
