Google’s parent company Alphabet has announced an acquisition of Intersect, a “data center and energy infrastructure” company that aims to provide additional support for building out its capacity for AI.
The deal sees Alphabet paying $4.75 billion in cash for Intersect alongside the assumption of its debt, though the company itself will remain under its own brand separate from both Google and its parent company. This new team will “partner closely” with Google’s in-house infrastructure team as it works to build additional data centers while simultaneously diversifying its energy intake, though pre-existing assets in Texas and California will be spun off into their own independent company.
Intersect isn’t a new investment for Google; the brand already own a minority stake in it from a funding round dated December 2024. The two have since begun work on a “co-located data center and power site” in Texas that will be bundled as part of this deal. Today’s announcement specifically points to a goal of building data centers “without passing on costs to grid customers,” an ongoing problem facing US residents throughout the entire country.
Intersect was founded in 2016 and its current CEO, Sheldon Kimber, plans to remain onboard as CEO. Meanwhile, Google and Alphabet CEO Sundar Pichai said this as part of the deal:
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. We look forward to welcoming Sheldon and the Intersect team.
Alphabet expects the deal to close in the first half of 2026.
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