Key Points
- Alphabet is acquiring infrastructure firm Intersect for $4.75 billion. The deal aims to speed up the construction of AI data centers.
- Intersect will help Google build power plants alongside new data sites.
- Alphabet already owned a small portion of the company before this buyout.
- The acquisition excludes certain existing assets in California and Texas.
Alphabet, the parent company of Google, just made a massive move to secure the power it needs for the future of artificial intelligence. On Monday, the tech giant announced it will acquire Intersect, a company that specializes in data centers and energy infrastructure. Alphabet is paying $4.75 billion in cash for the deal and will also take on Intersect’s existing debt.
Sundar Pichai, the CEO of Alphabet and Google, explained that this purchase is all about speed and efficiency. He wants to build new power plants at the same time and in the same locations as new data centers. This “lockstep” approach helps avoid the long delays that often occur when waiting for local power grids to supply sufficient electricity. By owning the infrastructure company, Google can be more aggressive in expanding its AI and cloud computing capacity.
This isn’t a sudden move for Google. The company already held a minority stake in Intersect following a funding round late last year. At that time, both companies planned to develop significant data center capacity across the United States. They also discussed a $20 billion plan to expand renewable energy infrastructure by the end of this decade. This acquisition essentially makes that partnership official and brings Intersect’s expertise entirely under the Alphabet umbrella.
Under the new deal, Intersect will remain an independent business but will work closely with Google’s technical teams. They already have a joint project in Haskell County, Texas, where they are testing co-located power solutions.
However, Alphabet noted that it is not buying every single piece of Intersect. Some older assets and developments in California and Texas will remain separate and are not included in the $4.75 billion price tag.
Investors and regulators expect the deal to close in the first half of 2026. As AI models require increasing amounts of electricity, tech giants like Alphabet are no longer just software companies—they are becoming major players in the energy and construction industries as well.
