Google parent Alphabet is set to acquire Intersect, a data centre and energy infrastructure solutions provider, for $4.75 billion in cash, along with taking on its existing debt. Google already holds a minority interest in Intersect.
The acquisition aims to facilitate quicker activation of additional data centre and generation capacity, while promoting energy innovation and development.
Intersect will work closely with Google’s team and help develop several gigawatts of energy and data centre projects that are either in development or under construction, resulting from its successful existing collaboration with Google.
“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data centre load, and reimagine energy solutions to drive US innovation and leadership,” said Sundar Pichai, CEO of Google and Alphabet, in a statement.
Intersect will also investigate a variety of emerging technologies to enhance and diversify energy supply while supporting Google’s investments in US data centres to meet the demands of its Cloud customers and users.
According to the tech giant, the acquisition will bolster Alphabet and Google’s ongoing promise to collaborate with utilities and energy developers throughout the industry to provide a reliable, ample, and affordable energy supply that facilitates the expansion of data centre infrastructure without imposing costs on grid customers.
Alphabet is also leveraging AI to expedite grid connections for new power plants and to assist in scaling energy-efficiency and affordability initiatives in data center communities.
The agreement is contingent upon standard closing conditions and is expected to finalise in the first half of 2026.
Intersect will operate independently from Alphabet and Google, led by Sheldon Kimber. It will collaborate with Google’s technical infrastructure team on joint projects, including a co-located data centre in Haskell County, Texas.
Current assets in Texas and in-development projects in California will not be included in the acquisition and will continue to be supported by existing investors. Intersect expects a smooth transition and continuity of service for clients.
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