Alphabet, the parent company of Google, has announced its acquisition of Intersect, a data center and energy infrastructure solutions provider, for $4.75 billion in cash, plus the assumption of debt. The deal, announced December 22, 2025, aims to bolster Alphabet's data center capacity and accelerate its sustainability initiatives by integrating Intersect's expertise in renewable energy and data center development. The acquisition is projected to close in the first half of 2026, pending customary closing conditions.
Intersect, founded in 2016, has a portfolio that includes $15 billion worth of operating or under-construction infrastructure, expecting to reach 10.8 gigawatts of clean energy capacity by late 2028. The company develops and owns clean energy resources, providing low-carbon electricity, fuels, and related products to customers across North America. Alphabet's acquisition includes Intersect's team and multiple gigawatts of energy and data center projects under development or construction stemming from their existing partnership.
A key aspect of the acquisition is the integration of energy solutions with data center capacities. Alphabet aims to bring more data center and generation capacity online faster. Intersect will work with Google's technical infrastructure team on projects such as the co-located data center and power site in Haskell County, Texas. This aligns with Alphabet's strategy to expand capacity and build new power generation in tandem with new data center load.
Intersect's operations will remain separate from Alphabet and Google, operating under the Intersect brand and led by CEO Sheldon Kimber. However, existing investors will purchase some of Intersect's assets in Texas and California, running them as a separate company. These assets will continue constructing new projects, including a large battery energy storage system.
The acquisition underscores Alphabet's commitment to U.S. energy innovation and its goal of achieving net-zero emissions across all operations and value chain by 2030. Google Cloud aims to run on carbon-free energy 24/7 across all data centers by 2030. Alphabet is investing in renewable energy projects and technologies such as advanced geothermal, long-duration energy storage, and gas with carbon capture and storage. The company is also deploying AI to accelerate grid connection of new power plants and scale energy efficiency programs in data center communities.
Sundar Pichai, CEO of Google and Alphabet, stated that Intersect will help expand capacity, operate nimbly in building new power generation, and reimagine energy solutions to drive U.S. innovation. Sheldon Kimber noted the importance of modern energy infrastructure in American competitiveness in AI and expressed excitement about accelerating innovation at scale as part of Google. He added that the grid is "not built for the AI era" and that energy innovation, community investment, and responsible resource use are crucial.
The acquisition reflects a growing trend where data center growth and renewable power are linked in investment and infrastructure planning. Alphabet's move to acquire Intersect signals a tighter integration between AI data centers and clean energy infrastructure, positioning the company to meet the increasing energy demands of AI development while advancing its sustainability goals.
