Alphabet announced a definitive agreement on December 22 to acquire Intersect, a provider of data center and energy infrastructure solutions, for $4.75 billion in cash plus the assumption of debt.
Google already held a minority stake in Intersect from a prior funding round.
The transaction was expected to close in the first half of 2026, subject to customary regulatory and closing conditions, the company said.
Alphabet said the acquisition was intended to bring new data center and power generation capacity online more quickly as demand for cloud computing and AI infrastructure increased.
Intersect’s team and its pipeline of multi-gigawatt energy and data center projects under development or construction, including those with Google, were included in the deal.
Intersect would continue to operate as a separate business under its existing brand and leadership, partnering closely with Google’s technical infrastructure team.
Certain Intersect assets were excluded from the acquisition, including operating assets in Texas and assets in operation or development in California, which would remain under a separate independent company backed by existing investors.
Alphabet said the deal aligned with its broader strategy to expand U.S. energy supply, including investments in advanced geothermal, long-duration energy storage, and gas with carbon capture, while supporting the rapid expansion of data center infrastructure.
Key Takeaways:
- Alphabet agreed to acquire Intersect for $4.75 billion to support energy and data center infrastructure growth in the U.S.
- The deal aimed to accelerate power generation and data center capacity as cloud and AI demand increased.
- The acquisition was expected to close in the first half of 2026, pending regulatory approvals.
You may also want to check out some of our other recent updates.
Wanna know what’s trending online every day? Subscribe to Vavoza Insider to access the latest business and marketing insights, news, and trends daily with unmatched speed and conciseness! 🗞️
