Alphabet, the parent company of Google, has announced a definitive agreement to acquire Intersect, a prominent provider of data center and energy infrastructure solutions, for $4.75 billion in cash, plus the assumption of debt. The acquisition, expected to close in the first half of 2026, signifies a major step in Alphabet's commitment to advancing U.S. energy innovation and bolstering its AI capabilities. Google already owns a minority stake in Intersect from a previous funding round.
Intersect, founded in 2016, has a portfolio that includes $15 billion worth of operating or under-construction infrastructure, with 10.8 gigawatts of clean energy capacity expected to be operational or under construction by late 2028. The company is a developer of utility-scale solar and battery energy storage systems.
The acquisition will enable more data center and generation capacity to come online faster, accelerating energy development and innovation. Intersect will help Alphabet expand capacity and operate more nimbly in building new power generation in tandem with new data center load. It will also allow for reimagining energy solutions to drive U.S. innovation and leadership.
Intersect's operations will remain separate from Alphabet and Google under the Intersect brand. Sheldon Kimber will continue to lead the company as CEO. Intersect will partner closely with Google's technical infrastructure team, continuing work on in-development and new joint projects, including the co-located data center and power site under construction in Haskell County, Texas.
This acquisition represents a strategic move by Alphabet to secure the resources necessary to power its growing AI infrastructure. The demand for data centers is surging due to the increasing reliance on AI, prompting significant investments from tech companies like Google. Google plans to spend $25 billion on data centers and AI infrastructure in the PJM electric grid region over the next two years. Google projected its 2026 capital expenditures for AI infrastructure to reach between $91 billion and $93 billion, up from $52.5 billion in 2024.
The deal will give the tech giant access to Intersect's team and multiple gigawatts of energy and data center projects that are either in development or under construction from an existing partnership with Google. Alphabet is committed to creating new pathways and partnerships to responsibly increase energy supply while advancing the rapid commercialization of advanced energy technologies, including advanced geothermal, long-duration energy storage, and gas with carbon capture and storage. Additionally, Alphabet is deploying AI to accelerate the grid connection of new power plants and helping scale energy efficiency and affordability programs in data center communities.
The acquisition follows a prior partnership between Google and Intersect and represents a new tactic being adopted by the tech giant's parent company in its decarbonization journey. In 2024, the two companies closed a deal to develop data centers co-located in energy parks with $20 billion of renewable energy and battery storage systems. Intersect's existing operating assets in Texas and its operating and in-development assets in California will not be part of the acquisition. Existing investors also plan to purchase a portion of the developer's assets and run them as a separate company.
The Quantum Clean Energy Project in Haskell County, Texas, exemplifies Google's energy park development strategy. This site features 640 MW of solar and 1.3 GWh of battery storage built alongside a new data center campus and is slated to be completed in late spring 2026. Intersect has secured a 2.4 GW solar module supply deal with U.S. manufacturer First Solar through 2026.
