Alphabet is acquiring Intersect for $4.75 billion in cash, supplemented by the assumption of debt. With the acquisition of the company, which focuses on data center and energy infrastructure, Alphabet is strengthening its position at a time when demand for computing power and electricity is rapidly increasing.
According to CNBC, the acquisition is part of the increasing competition surrounding artificial intelligence. Google is under pressure from rivals such as OpenAI, which accelerated the generative AI market with the introduction of ChatGPT in 2022. OpenAI is said to have committed to more than $1.4 trillion in infrastructure to get enough data center capacity. With that in mind, Alphabet is trying to get a faster grip on both data centers and the energy supply that goes with them by taking over Intersect.
Google already had a minority stake in Intersect after a financing round announced last year. At that time, Intersect spoke of ambitious plans to develop several gigawatts of data center capacity in the United States in collaboration with Google and investor TPG Rise Climate. This also included an investment of approximately $20 billion in renewable energy infrastructure by the end of this decade. That earlier collaboration forms the basis for the full acquisition by Alphabet.
Data centers and energy generation in one location
The transaction includes the Intersect team and a series of energy and data center projects that are in development or under construction. An important part of this is the concept of colocation, whereby data centers and energy generation are realized at a single location. Alphabet expects this approach to enable new capacity to be brought online faster and better aligned with actual demand, without passing on additional costs to other users of the electricity grid.
Following the acquisition, Intersect will continue to operate as an independent company under its own name. Founder and CEO Sheldon Kimber will remain at the helm, and the company will work closely with Google’s technical infrastructure teams on existing and new projects. Not all of Intersect’s activities are part of the deal. The operational assets in Texas and the operational and developing projects in California remain outside the acquisition and will continue as an independent company, supported by existing investors.
Alphabet is positioning the acquisition as part of a broader strategy to increase the availability of energy for large-scale digital infrastructure. The group is collaborating with utility companies and energy developers and investing in technologies such as advanced geothermal energy, long-term energy storage, and gas-fired power plants with CO₂ capture. In addition, Alphabet is using artificial intelligence to accelerate processes related to grid connections.
The transaction is expected to close in the first half of 2026, subject to regulatory approval and customary closing conditions.