Alphabet to purchase Intersect for $4.75 billion in cash plus debt to expand data center capacity

Alphabet, the company that owns Google, said Monday it will buy Intersect for $4.75 billion in cash and take on the company’s debt. Intersect builds and runs data centers and energy infrastructure.

The deal will help Alphabet add more data center space and power capacity more quickly, the company said. Intersect will keep operating on its own after the purchase goes through.

Google faces tough competition in artificial intelligence, especially from OpenAI. OpenAI released its ChatGPT chatbot in 2022, which started a huge surge in AI technology. OpenAI has pledged more than $1.4 trillion to build the data centers needed for its growing business.

Alphabet wants to match that pace with this purchase.

“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,” said Sundar Pichai, who leads both Google and Alphabet.

Texas operations central to the partnership

Google already owned a small piece of Intersect from an investment last December. At that time, Intersect said it was working with Google and TPG Rise Climate to build gigawatts of data center capacity across America, including a $20 billion investment in clean energy infrastructure by 2030.

Alphabet said Intersect will partner closely with Google’s infrastructure team, including work at a combined power and data center site in Haskell County, Texas. Google previously said it would invest $40 billion in Texas through 2027, building new data center facilities in Haskell and Armstrong counties.

Texas has become a major destination for technology companies looking to build infrastructure. Several big names, including Anthropic, Meta Platforms Inc., and Microsoft, have announced plans to set up shop in the state, as reported by Cryptopolitan previously. All these investments show why Texas has turned into a hotspot for tech companies expanding their operations.

However, some of Intersect’s California properties and certain Texas operations are not included in the sale. Those will stay with current investors TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners as a separate company.

The purchase should finish in the first half of 2026, pending standard approval requirements.

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