Alphabet, the parent of Google, has announced plans to acquire Intersect, a data center and energy infrastructure firm, for $4.75 billion in cash, along with the assumption of debt. The deal is aimed at rapidly expanding data center and power-generation capacity to support Google’s accelerating AI and cloud ambitions.
Alphabet said Intersect will continue to operate independently, while working closely with Google’s technical infrastructure teams to bring new capacity online faster. Google already held a minority stake in Intersect from a funding round announced in December, which focused on developing gigawatts of U.S. data center capacity alongside major renewable energy investments.
The acquisition comes amid intensifying competition in artificial intelligence infrastructure, particularly with OpenAI, which has committed over $1.4 trillion to data center and compute expansion. By acquiring Intersect, Alphabet aims to ensure sufficient power and data center availability to keep pace with growing AI demand.
“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 collaborate on projects such as the co-located power and data center site in Haskell County, Texas, aligned 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.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
