Alphabet has agreed to acquire Intersect, a company focused on data center and energy solutions, in a transaction valued at $4.75 billion. This acquisition, announced on Monday, allows Alphabet to enhance its existing investments in Intersect, which will maintain its operations under its own brand post-acquisition. CEO Sundar Pichai emphasized that the deal will enable quicker development of new energy generation alongside data centers, addressing the growing demands of AI infrastructure.
As Google prepares to invest $40 billion in new data center projects in Texas, the need for increased computing power is becoming paramount among tech giants such as Microsoft and OpenAI. This surge in data center establishment has sparked local concerns over rising electricity costs, which have outpaced national averages in areas with numerous data centers.
In response to these challenges, lawmakers in states like Minnesota are considering legislation to regulate the data center industry, focusing on energy and water consumption. High electric bills associated with data centers have also influenced public opinion, leading figures like Sen. Bernie Sanders to advocate for a temporary halt on new constructions to allow for necessary adjustments in policy and public welfare.