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Alphabet acquires Intersect for $4.75 billion to expand data center and energy capacity
Monday, December 22, 2025 at 06:02 PM
Google's parent company Alphabet has acquired Intersect for $4.75 billion in a cash and debt assumption deal. The acquisition secures Intersect's development team and a pipeline of multiple gigawatts of data center and energy projects. While Intersect will operate as a separate entity under its existing brand and leadership, its current operating assets in Texas and California are excluded from the transaction. The move is designed to scale energy infrastructure for Google Cloud and AI workloads.
Context
Alphabet is acquiring energy infrastructure firm Intersect for $4.75 billion in cash plus the assumption of debt. The transaction focuses on Intersect’s development team and multiple gigawatts of data center and energy projects currently in progress. While Intersect will continue to operate as a separate entity led by founder Sheldon Kimber, its existing operating assets in Texas and California are notably excluded from the deal. This follows a minority stake Google established during an $800 million funding round in 2024.
The acquisition is a strategic move to secure the massive power capacity required to scale Google Cloud and Artificial Intelligence infrastructure amid rising grid constraints. By internalizing power development, Alphabet aims to bypass supply bottlenecks and support its record capital spending, which reached a projected $93 billion in 2025. Expected to close in the first half of 2026, the deal highlights the increasing necessity for hyperscalers to vertically integrate energy supply chains to maintain competitive scaling in the global tech landscape.
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