Alphabet to Acquire Data Center and Energy Infrastructure Firm Intersect for $4.75 Billion

Alphabet Inc (NASDAQ: GOOGL) announced Monday that it has agreed to acquire Intersect, a data center and energy infrastructure company, in a transaction valued at $4.75 billion in cash, plus the assumption of debt.Alphabet said the acquisition is designed to accelerate the development of new data center capacity and power generation infrastructure, as the company expands its global artificial intelligence and cloud computing footprint.

Intersect will continue to operate independently following the transaction, Alphabet said, while working more closely with Google’s technical infrastructure teams to help bring new facilities online faster.

The deal comes as competition among major technology companies intensifies to secure the massive computing and energy resources required to support AI workloads. Demand for data center capacity has surged following the rapid adoption of generative artificial intelligence tools, pushing technology companies to invest aggressively in infrastructure.

“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive U.S. innovation and leadership,” said Sundar Pichai, chief executive officer of Google and Alphabet. Alphabet already held a minority stake in Intersect from a previous funding round announced last December. At that time, Intersect said its strategic partnership with Google and TPG Rise Climate was focused on developing gigawatts of data center capacity across the United States, including plans for up to $20 billion in renewable power infrastructure investment by the end of the decade.

As part of the acquisition, Intersect will work closely with Google on shared infrastructure projects, including a co-located power and data center site in Haskell County, Texas. Google has previously committed $40 billion in investments across Texas through 2027, including new data center campuses in Haskell and Armstrong counties.

Alphabet said that Intersect’s operating and in-development assets in California, along with certain existing Texas assets, are not included in the transaction. Those assets will continue to be supported and operated independently by Intersect’s current investors, including TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners. The acquisition is expected to close in the first half of 2026, subject to customary closing conditions. Alphabet said the transaction strengthens its ability to scale infrastructure efficiently while supporting long-term growth in cloud computing and artificial intelligence services.

About Alphabet Inc.

Alphabet Inc. (NASDAQ: GOOGL) is a global technology company and the parent of Google, operating across internet services, cloud computing, artificial intelligence, hardware, and infrastructure. Through Google and its other businesses, Alphabet provides search, advertising, cloud services, AI platforms, and consumer technologies used by billions of people worldwide. The company continues to invest heavily in data centers, renewable energy, and advanced computing infrastructure to support long-term innovation and growth.

At the time of publishing, Stocks.News holds positions in Alphabet as mentioned in the article.