Alphabet to Acquire Energy and Data Center Firm Intersect in $4.75 Billion Deal
December 22, 2025
In a strategic move to secure critical infrastructure for its artificial intelligence ambitions, Alphabet Inc., the parent company of Google, announced on Monday its agreement to acquire Intersect, a data center and energy infrastructure company. The all-cash transaction is valued at $4.75 billion, plus the assumption of debt, underscoring the intensifying race among tech giants to build the computational and power foundations required for the AI era.
The acquisition highlights a fundamental shift in the data center industry, where securing massive, reliable, and sustainable power has become as crucial as constructing the facilities themselves. As generative AI models demand unprecedented levels of energy, companies like Google are vertically integrating their supply chains to ensure they can scale capacity rapidly and reliably.
Under the deal, Intersect’s operations will remain independent but will work closely with Google’s technical infrastructure team. A key focus will be accelerating the development of co-located power and data center sites, such as a joint project in Haskell County, Texas. This integration aims to synchronize new power generation with new data center load more efficiently. Alphabet expects the acquisition to close in the first half of 2026, pending customary regulatory approvals.
Financial details reveal the scale of the commitment. The $4.75 billion purchase price follows Google’s existing minority stake in Intersect, acquired in a funding round announced in December 2024. That earlier partnership outlined a vision to develop gigawatts of data center capacity across the United States, backed by a planned $20 billion investment in renewable power infrastructure by 2030. This acquisition accelerates those efforts, complementing Google’s previously announced $40 billion investment plan for Texas through 2027.
In a statement, Sundar Pichai, CEO of Google and Alphabet, framed the deal as essential for competitive and national interests. “Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership,” Pichai said.
The transaction excludes Intersect’s operating and in-development assets in California and its existing operating assets in Texas. These assets will continue to be supported by Intersect’s current investors, including TPG Rise Climate, and will operate as an independent company.
The deal positions Alphabet to better compete with rivals like OpenAI, which has secured over $1.4 trillion in infrastructure commitments to build out its own data center network. By bringing critical power development expertise in-house, Google aims to overcome one of the most significant bottlenecks in AI scaling: the availability of sustainable, cost-effective electricity. The move signals a broader industry trend where the winners in AI may be determined not just by algorithms, but by their command over physical infrastructure and energy assets.
Source: CNBC
