Alphabet to acquire Intersect for $4.75bn in AI push

Google’s parent company Alphabet has agreed to acquire data centre and energy infrastructure solutions provider Intersect for $4.75bn.

In a statement, Alphabet said the deal will “enable more data center and generation capacity to come online, faster, while accelerating energy development and innovation”.

Last month, Google disclosed plans to invest $40bn in Texas, US, by 2027, focusing on scaling its cloud and AI infrastructure.

The transaction includes Intersect’s portfolio of energy and data centre projects currently in development or under construction through its partnership with Google.

Upon completion, Intersect will continue to operate independently under its own brand, led by Sheldon Kimber, and will maintain a close working relationship with Google’s technical infrastructure team on ongoing and future projects.

Google already holds a minority stake in Intersect from an earlier funding round.

The two companies are collaborating on their first co-located data centre and power site in Haskell County, Texas.

Intersect plans to investigate emerging technologies that could help increase and diversify energy supply as it supports Google’s expanding US data centre requirements for cloud customers and users.

However, Intersect’s operating assets located in Texas, as well as those operating or in development in California, will not be included in the deal.

These assets will remain with a separate entity supported by backers TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners, who have stated they expect uninterrupted service for customers.

Alphabet and Google CEO Sundar Pichai said: “Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data centre load, and reimagine energy solutions to drive US innovation and leadership. We look forward to welcoming Sheldon and the Intersect team.”

Alphabet states that this acquisition aligns with its strategy to collaborate with utilities and developers to ensure adequate energy supply for future data centre infrastructure growth without transferring costs to electricity grid customers.

The company is also pursuing a range of initiatives aimed at increasing energy capacity responsibly and speeding up the commercialisation of advanced energy technologies such as advanced geothermal systems, long-duration storage, and gas projects with carbon capture capabilities.

Additionally, Alphabet is employing artificial intelligence tools to assist with faster integration of new power plants into the grid and promote efficiency programmes within data centre communities.

Intersect founder and CEO Sheldon Kimber said: “Intersect has always been focused on bringing innovation to the industry and we look forward to accelerating at scale as part of Google.

“Modern infrastructure is the linchpin of American competitiveness in AI. We share Google’s conviction that energy innovation and community investment are the pillars of what must come next.”

The deal remains subject to standard closing conditions and is expected to be finalised in the first half of 2026.

“Alphabet to acquire Intersect for $4.75bn in AI push” was originally created and published by Verdict, a GlobalData owned brand.

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