Alphabet Acquires Intersect for $4.75 Billion: How Google Is Strengthening Data Centers and Energy Infrastructure to Compete in AI

Alphabet has unveiled a major acquisition that will change the future of energy infrastructure and data centers worldwide. The tech giant announced the acquisition of a company named Intersect. Based in San Francisco, Intersect operates data centers and energy plants. This move from Alphabet showcases that the tech giant is serious about advancing reliable data centers after the power generation has surged and artificial intelligence has taken the center stage.

Alphabet Set to Acquire Intersect for $4.75 Billion

Alphabet has confirmed in its statement that the company has acquired a data center and energy infrastructure company in a cash deal. The acquisition is valued at $4.75 billion, along with the assumption of debt. However, the tech giant also made clear that Intersect will continue to operate independently, and hence, this acquisition is designed to help Alphabet bring new data centers and power generation projects.

The company came to this acquisition with aim to strengthen its physical backbone that’s required to expand its digital services.

Data Centers Role in AI Infrastructure

In last few years, especially in 2025, the AI race has intensified at breakneck speed. Generative AI companies over the past years are developing large models that require massive computing power. This power surely needs an advanced data centers and stable energy supplies. Rival companies like OpenAI are already developing and committing toward building an advanced infrastructure that can handle large user demands.

What is the Need to Strengthen Energy Infrastructure?

As per Alphabet, Intersect will help and play a key role in expanding power generation capacity worldwide. It will help in building more advanced and modern data centers. This move also highlights that the reason for this acquisition was not solely dependent on the focus toward speed, but also to build smarter coordination between energy supply and data center load.

In future, this acquisition will help Alphabet to improve efficiency and support innovation as the demand for large-scale digital infrastructure continues to rise.

Google’s Growing Footprint in the United States

The acquisition is an extension of the investments that Google has made in Texas. To recall, the tech giant has already announced a sizeable investment in the United States for up to the year 2027. This includes the construction of new campuses of the data centers and other essential centers that’s needed for the further development. As per tech giant, Intersect will collaborate with the technical infrastructure teams at Google, especially when it comes to co-located power and data center projects in Texas.

What’s Next for the Alphabet and Intersect Deal?

Alphabet predicts that the deal will be completed within the first half of 2026. Some of the Intersect assets, such as California operations and some facilities in Texas, will not be included in the transaction and will still be owned.