Google Bets Big on Data Infra With a $4.75B Deal in Intersect
Keeping the operations separate from Google and Alphabet, Intersect will remain an individual brand, spearheaded by Sheldon Kimber.
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Google’s parent company, Alphabet, on Monday, announced its decision to acquire the data center and energy infrastructure solutions provider Intersect.
The term sheet was signed for $4.75 billion in cash, with an assumption of debt.
“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,” said Sundar Pichai, CEO, Google and Alphabet.
Notably, the tech giant previously invested in Intersect for a minority stake a year back. With this strategic move, Google is further committing to its data center ambitions. However, Intersect’s existing operating Texas assets and operating and in-development California assets have been kept outside the acquisition.
The Intersect acquisition will empower Google to have more data centres and generation capacity to come online faster, as energy development and innovation accelerates.
Keeping the operations separate from Google and Alphabet, Intersect will remain an individual brand, spearheaded by Sheldon Kimber, founder and CEO, Intersect.
“Intersect has always been focused on bringing innovation to the industry, and we look forward to accelerating at scale as part of Google,” said Kimber. “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.”
Intersect will explore emerging technologies to increase and diversify energy supply, along with supporting Google’s U.S. data center investments.
Alphabet continues to invest in energy supply, while advancing the rapid commercialization of advanced energy technologies such as advanced geothermal, long-duration energy storage, and gas with carbon capture and storage.
Additionally, it will deploy AI to accelerate the grid connection of new power plants and help scale energy efficiency and affordability programs in data center communities.
The deal is anticipated to close in H1 2026.
