Prime Highlight
- Alphabet plans to acquire Intersect to speed up the expansion of its data centers and power infrastructure, supporting the company’s long-term technology growth.
- The deal will help Google secure a reliable energy supply while building new data centers more efficiently.
Key Facts
- Alphabet will purchase Intersect for $4.75 billion in cash, along with the assumption of debt.
- Intersect will continue to operate independently after the acquisition, with some assets excluded from the deal.
Background:
Alphabet, Google’s parent company, plans to buy Intersect, a data center and energy infrastructure company, for $4.75 billion in cash and debt. The acquisition is aimed at growing Alphabet’s data center capacity and ensuring a steady power supply for its technology services.
Alphabet said Intersect will continue to run as a separate business after the deal is completed. The company said the deal will speed up the building of new data centers and power projects. This will help Google better meet the growing demand for its cloud and digital services
Sundar Pichai, CEO of Google and Alphabet, said the deal will make it easier for the company to grow its infrastructure while focusing on cleaner energy options. He also noted that the partnership will encourage innovation and strengthen the country’s position in technology and energy.
Google already owned a small share of Intersect after taking part in a funding round announced in December last year. At that time, Intersect said its collaboration with Google and TPG Rise Climate focused on developing gigawatts of data center capacity across the United States, supported by major investments in renewable power infrastructure by the end of the decade.
After the deal is completed, Intersect will collaborate with Google’s infrastructure teams on key projects, including a combined power and data center facility in Haskell County, Texas. Google has already committed to investing $40 billion in Texas through 2027, covering new data center campuses in multiple counties.
Alphabet said that Intersect’s active and planned projects in California, along with certain facilities in Texas, are not part of the deal. These assets will stay with Intersect’s current investors and will continue to operate separately.
The deal is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions.
