Alphabet Inc. has agreed to acquire Intersect for $4.75 billion, marking a strategic move to more tightly integrate Google’s rapidly expanding data centre footprint with large-scale energy infrastructure development. The acquisition brings a long-standing partner closer to Google as it looks to accelerate the rollout of new data centres while ensuring reliable, scalable power generation is developed in parallel to support growing compute demand.
The deal reflects a broader shift in how hyperscalers approach infrastructure expansion, as access to energy has become a critical constraint in scaling AI and cloud services. By combining data centre planning with energy generation and grid integration from the outset, Google aims to shorten deployment timelines and reduce bottlenecks that often delay large infrastructure projects.
“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data centre load, and reimagine energy solutions to drive US innovation and leadership,” said Sundar Pichai, CEO of Google and Alphabet. The acquisition builds on an existing collaboration between the two companies and is expected to unlock several gigawatts of power and data centre capacity that is already in various stages of development.
Intersect has been a key partner in developing energy solutions tailored to the needs of hyperscale data centres, including projects that co-locate power generation with computing infrastructure. Following the acquisition, Intersect will continue to operate independently under its current CEO, Sheldon Kimber, while working closely with Google’s technical infrastructure teams. This structure is intended to preserve Intersect’s operational focus while enabling deeper technical and strategic alignment with Google.
One of the joint initiatives highlighted as part of the deal is a co-located data centre and energy project in Haskell County, Texas. Such projects illustrate Google’s broader strategy of pairing data centre builds with dedicated energy assets to improve reliability, efficiency, and speed to market.
Industry analysts see the acquisition as a response to intensifying competition in cloud and AI infrastructure, where the ability to secure power at scale is becoming as important as access to land or advanced chips. As AI workloads continue to drive exponential growth in compute demand, Google’s move to internalise more of the energy development process positions it to scale infrastructure more predictably.
With Intersect’s expertise now under the Alphabet umbrella, Google is expected to further refine its model of synchronised data centre and energy deployment, reinforcing its long-term ambitions in AI, cloud services, and digital infrastructure leadership.
