Alphabet has entered a definitive agreement to acquire Intersect, a provider of data center and energy infrastructure solutions, for $4.75 billion in cash plus debt assumption. Alphabet previously held a minority stake in Intersect through a funding round.
The deal is designed to accelerate the deployment of new data center and power generation capacity while supporting energy innovation in the U.S. Intersect’s team and multiple gigawatts of projects under development or construction will join Alphabet and Google’s initiatives. The acquisition will enable faster buildout of co-located data centers and energy projects, such as the first joint site in Haskell County, Texas.
Intersect will continue operating under its own brand, led by founder and CEO Sheldon Kimber, and work closely with Google’s technical infrastructure team. Existing operating assets in Texas and California will remain independent, supported by current investors including TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners, ensuring continuity for customers.
Sundar Pichai, CEO of Google and Alphabet, said the acquisition will allow the company to expand capacity, align new power generation with data center demand, and drive U.S. innovation. Kimber emphasized that the partnership will accelerate infrastructure modernization, noting the importance of energy innovation and community investment for competitiveness in AI.
Supporting U.S. Energy Innovation
The acquisition aligns with Alphabet and Google’s broader strategy to partner with utilities and energy developers to deliver abundant, reliable, and affordable energy. The companies are focused on scaling data center infrastructure without passing costs to grid customers while commercializing advanced energy technologies such as geothermal, long-duration storage, and gas with carbon capture.
AI will also be deployed to speed grid connections for new power plants and enhance energy efficiency in data center communities.
The acquisition is expected to close in the first half of 2026, pending customary closing conditions. The deal positions Alphabet to expand data center capacity in tandem with sustainable energy development, strengthening its infrastructure for cloud and AI services, and comes as the company also explores multi-billion dollar chip deals with Meta to supply TPUs for data centers.
