Alphabet $GOOGL ( ▲ 1.18% ) is going deeper into the AI infrastructure arms race, announcing a $4.75 billion all-cash acquisition of data center and energy infrastructure builder Intersect. Google’s parent already owned a minority stake and partnered with the company, but this move pulls a critical supplier fully in-house as demand for AI compute keeps accelerating.
Power first, AI second
Intersect specializes in pairing large-scale data centers with dedicated power generation, including renewable and natural gas assets. Alphabet said the acquisition will help it bring new data center capacity and on-site energy online faster, a growing priority as AI workloads push power constraints to the forefront. CEO Sundar Pichai said Intersect will allow Google to “build new power generation in lockstep with new data center load.”
Keeping up in the infrastructure race
The deal comes as hyperscalers scramble to secure power and land for AI expansion. Alphabet has already committed tens of billions to U.S. data center growth, including a $40 billion investment in Texas through 2027. Bringing Intersect under its umbrella gives Google tighter control over energy timelines, costs, and reliability at a moment when infrastructure bottlenecks are becoming a competitive differentiator.
What stays separate: Intersect will continue operating as its own business, led by CEO Sheldon Kimber, and some existing assets in Texas and California are excluded from the transaction. The acquisition is expected to close in the first half of 2026, pending regulatory approvals. For Alphabet, it is another signal that winning in AI is no longer just about models and chips, but about power, concrete, and speed.