Alphabet Inc. has agreed to acquire Intersect, a data center infrastructure provider, in a deal valued at $4.75 billion. The transaction underscores Alphabet’s push to strengthen its cloud computing and AI infrastructure capabilities.
- Alphabet to acquire Intersect for $4.75 billion in cash
- Intersect operates 2.8 million square feet of data center space across the U.S.
- Deal expected to close in Q1 2026, subject to regulatory approval
- Acquisition aims to strengthen Google Cloud and AI infrastructure
- Integration targets 15% increase in Alphabet’s core data center capacity
- No immediate changes expected to Intersect’s client operations
Alphabet Inc. has entered into a definitive agreement to acquire Intersect, a specialized data center services and infrastructure provider, for $4.75 billion in cash. The acquisition, finalized in December 2025, marks a strategic move to enhance Alphabet’s capacity and control over critical digital infrastructure supporting its cloud and artificial intelligence operations. Intersect, headquartered in the United States, has delivered mission-critical data center solutions to enterprise clients and technology firms, including cloud providers and AI developers. The company operates a portfolio of managed data centers across key U.S. markets, including Northern Virginia, Silicon Valley, and Chicago, with a combined capacity exceeding 2.8 million square feet of leasable space. The integration will allow Alphabet to expand its owned infrastructure footprint and reduce reliance on third-party providers. The $4.75 billion price tag reflects Intersect’s strong market position and technical capabilities, with the deal expected to close in Q1 2026, pending regulatory review. The acquisition is projected to accelerate Alphabet’s ability to support growing demand for AI-driven workloads, particularly those tied to Google Cloud Platform and Gemini AI services. Analysts estimate the transaction could boost Alphabet’s data center capacity by up to 15% in its core markets. The move is expected to impact the broader cloud infrastructure sector, potentially influencing leasing activity and investment trends among data center operators. Intersect’s employees and existing client contracts will transition under Alphabet’s ownership, with no immediate changes to service delivery anticipated. The acquisition also signals a deeper vertical integration strategy within Alphabet’s technology stack, aligning hardware, software, and infrastructure for greater scalability.