Alphabet (GOOG) (GOOGL) is buying data center and energy infrastructure solutions company Intersect for $4.75B, the Google parent said Monday, as the tech giant bolsters its computing power capabilities necessary for cloud services and artificial intelligence.
The deal will be funded using cash, and Alphabet will take on Intersect’s existing debt, the companies said.
“The acquisition will enable more data center and generation capacity to come online faster while accelerating energy development and innovation,” according to the joint statement.
The deal includes multiple energy and data center projects currently in development by the parties but excludes Intersect’s existing operating assets in Texas and its operating and in-development assets in California.
Intersect will explore a range of emerging technologies to increase and diversify energy supply, and Alphabet will make use of AI to accelerate the grid connection of new power plants, the companies said.
Intersect will operate independently, and Sheldon Kimber will continue to lead the company once the deal closes, which is expected in the first half of next year.
“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. We look forward to welcoming Sheldon and the Intersect team,” Alphabet CEO Sundar Pichai said.
In 2024, Google took a minority stake in Intersect and participated in an $800M+ funding round, which included TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners.