Alphabet has reached an agreement to acquire Intersect, a company focused on data center and energy infrastructure. With the acquisition, Google’s parent company aims to accelerate the expansion of energy and data capacity in the United States.
Alphabet is paying $4.75 billion in cash for Intersect and also assuming debt. Google already had a minority stake in the company after a previous funding round. The transaction should make it possible to bring new data centers and power generation capacity online faster, in view of the growing demand for cloud and AI services. Alphabet expects to complete the transaction in the first half of 2026.
Energy and data centers
Intersect develops and builds energy and data center projects and is already working with Google on several initiatives. This collaboration has resulted in several projects that are under development or under construction, accounting for multiple gigawatts of capacity. After the acquisition, Intersect will also look into new technologies to expand and diversify the energy supply, in support of Google’s data center investments in the US.
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The company will continue to operate under the name Intersect and will retain its own structure. Founder and CEO Sheldon Kimber will remain at the helm. Intersect will work closely with Google’s technical infrastructure team.
Alphabet’s broader energy policy
According to Alphabet, the acquisition fits into a broader strategy around energy supply. The company wants to work with utilities and developers to ensure sufficient and reliable energy, without passing on extra costs to other grid users. Alphabet is also looking at advanced geothermal energy, long-term energy storage and gas-fired power plants with carbon capture.
In addition, the group is using AI to speed up grid connections for new power plants and scale up energy efficiency programs in data center communities.