Alphabet to Acquire Data Center Infrastructure Firm Intersect for $4.75B

Alphabet has reached a definitive agreement to acquire Intersect, a provider of data center and energy infrastructure solutions, in a $4.75 billion all-cash transaction that also includes the assumption of debt. Google, Alphabet’s largest subsidiary, already holds a minority stake in Intersect from a prior funding round.

The acquisition is designed to accelerate the development of new data center capacity and power generation, aligning infrastructure buildout with the rapidly growing energy demands driven by cloud computing and artificial intelligence. As part of the deal, Alphabet will gain access to Intersect’s development pipeline, which includes multiple gigawatts of data center and energy projects that are either under construction or in advanced stages of development through an existing partnership with Google.

Intersect will continue operating as a standalone business under its existing brand and leadership. The company will be led by founder and CEO Sheldon Kimber and will work closely with Google’s technical infrastructure team on both ongoing and future joint developments. Among those projects is the companies’ first publicly announced co-located data center and power site currently under construction in Haskell County, Texas.

“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 US innovation and leadership. We look forward to welcoming Sheldon and the Intersect team,” said Sundar Pichai, CEO of Google and Alphabet.

“Intersect has always been focused on bringing innovation to the industry and we look forward to accelerating at scale as part of Google,” said Sheldon Kimber, founder and CEO of Intersect. “Modern infrastructure is the linchpin of American competitiveness in AI. We share Google’s conviction that energy innovation and community investment are the pillars of what must come next.”

Not all of Intersect’s assets are included in the transaction. The company’s existing operating assets in Texas, as well as its operating and in-development assets in California, will remain independent and continue operating under current ownership. Those projects will remain backed by existing investors TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners, with no expected disruption to customers.

Alphabet said the acquisition supports its broader strategy to expand energy supply alongside data center growth while minimizing impacts on grid customers. The company plans to continue partnering with utilities and developers to unlock reliable, affordable energy and advance emerging technologies such as advanced geothermal, long-duration energy storage, and gas generation paired with carbon capture and storage.

The transaction remains subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2026.

The deal underscores Alphabet’s increasing focus on vertically integrating energy and infrastructure development to meet AI-driven demand while maintaining sustainability goals. By pairing data center construction with dedicated power generation, Alphabet aims to reduce delays tied to grid interconnection bottlenecks and accelerate deployment timelines across the U.S.

Intersect brings approximately $15 billion in assets either operating or under construction nationwide, positioning Alphabet to scale its infrastructure footprint more rapidly as cloud workloads and AI applications continue to surge.

Originally reported by Latitude Media.