Alphabet to acquire data center and Energy Firm Intersect for $4.75B to Accelerate U.S. AI Infrastructure Buildout

Alphabet, Google’s parent company, has agreed to acquire Intersect, a data center and energy infrastructure developer, for $4.75 billion in cash plus assumed debt, with the deal expected to close in the first half of 2026, pending regulatory approval. The acquisition reflects Alphabet’s push to overcome key physical constraints—power, land, and construction speed—that now limit large-scale AI growth. Intersect will continue operating as a standalone company under CEO Sheldon Kimber, working closely with Google’s infrastructure team. The deal includes Intersect’s pipeline of multi-gigawatt energy and data center projects, many already tied to Google, including a co-located power and data center project under construction in Texas. However, Intersect’s existing operating assets in Texas and California are excluded and will remain under separate ownership. Alphabet, which previously held a minority stake in Intersect, sees the acquisition as a way to better control energy supply and data center expansion amid grid bottlenecks and long build timelines. The move supports Google’s broader strategy to secure new power sources and accelerate U.S. AI infrastructure, underscoring that future AI leadership depends as much on physical infrastructure as on software innovation.