Alphabet is acquiring Intersect, a data center and energy infrastructure company, to accelerate the deployment of high-capacity computing and clean energy resources. The deal marks a pivotal step in supporting Alphabet’s growing AI and cloud computing demands.
- Alphabet is acquiring Intersect, a data center and energy infrastructure company.
- Intersect operates 18 data center campuses with 1.2 GW of power capacity.
- Deal expected to shorten data center deployment timelines by up to 30%.
- Acquisition supports Alphabet’s AI and cloud expansion goals.
- Estimated transaction value between $3.5 billion and $4.2 billion.
- Regulatory approval required; closure expected in Q2 2026.
Alphabet has announced the acquisition of Intersect, a specialized data center and energy infrastructure provider, to bolster its global computing and power capabilities. The transaction is expected to enable faster deployment of next-generation data centers, particularly in key U.S. markets including Virginia, Oregon, and North Carolina. Intersect operates a portfolio of 18 data center campuses with a combined capacity of over 1.2 gigawatts of power, positioning Alphabet to scale its cloud and AI infrastructure more efficiently. The acquisition supports Alphabet’s strategic push to meet rising demand for AI-driven services, including Google Search, YouTube, and Google Cloud. By integrating Intersect’s existing energy generation assets—including on-site solar and battery storage systems—the company aims to reduce reliance on external grid power and lower its carbon footprint. Intersect’s expertise in power procurement and regulatory permitting is expected to shorten project timelines by up to 30% for new data center developments. Financial terms of the deal were not disclosed, though industry analysts estimate the purchase price to be in the range of $3.5 billion to $4.2 billion based on Intersect’s operational footprint and growth trajectory. The transaction is subject to customary regulatory approvals and is expected to close in the second quarter of 2026. The move underscores Alphabet’s broader commitment to infrastructure resilience and sustainability. It could also influence the broader tech sector, as other cloud providers may accelerate similar infrastructure investments to maintain competitive parity in AI and data processing.