Alphabet, the parent company of Google, is set to acquire Intersect, a company focused on data center and energy infrastructure, for $4.75 billion in cash, including the assumption of its debt. Although the acquisition will enhance Alphabet's capabilities in artificial intelligence, Intersect will continue to operate independently under its own brand. The deal is expected to finalize in the first half of 2026.
Intersect, founded in 2016, already has a partnership with Google, having received previous investment from the tech giant in December 2024. The companies are currently collaborating on a data center and power site in Texas, which will be included in the acquisition. The goal of this partnership is to develop data centers that do not impose additional costs on grid customers, addressing a significant issue for residents across the United States.
Sheldon Kimber, the CEO of Intersect, will retain his position following the acquisition. Google CEO Sundar Pichai expressed optimism about the deal, stating it will allow for enhanced capacity and innovative energy solutions aligned with new data center demands.