Alphabet Inc., the parent company of Google, announced on Monday its intention to acquire Intersect, a data center and energy infrastructure company, for $4.75 billion in cash, along with the assumption of existing debt. The acquisition aims to enhance Alphabet's capacity for data center operations and energy generation.
Alphabet indicated that Intersect will maintain its independence following the acquisition, which is expected to facilitate a quicker rollout of data center and generation capacity. This move comes as Google seeks to remain competitive in the rapidly evolving artificial intelligence landscape, particularly against rivals such as OpenAI, which has made significant investments in data center infrastructure.
Sundar Pichai, CEO of Google and Alphabet, stated that the acquisition will enable the company to expand operational capacity and improve the development of power generation in conjunction with data center demands. Google previously held a minority stake in Intersect, which was part of a strategic partnership established last December to develop substantial data center capacity across the U.S.
The acquisition will focus on collaboration between Intersect and Google’s technical infrastructure team, specifically regarding a co-located power site and data center in Haskell County, Texas. This site is part of Google’s broader $40 billion investment plan in Texas, aimed at bolstering its data center presence in the region.
Notably, the assets that Intersect operates or is developing in California, as well as its existing operations in Texas, will not be included in the acquisition. Current investors in Intersect, such as TPG Rise Climate and Climate Adaptive Infrastructure, will continue to support these assets independently. The acquisition is anticipated to close in the first half of 2026, pending customary closing conditions.