Alphabet Moves to Lock In Power for the AI Era
Alphabet announced Monday that it will acquire Intersect, a data center and energy infrastructure developer, in a deal valued at $4.75 billion in cash plus the assumption of debt.
The acquisition is designed to help Alphabet bring new data center capacity and power generation online faster, a critical advantage as artificial intelligence workloads push global infrastructure to its limits.
Alphabet said Intersect will continue to operate independently, but will work closely with Google’s technical infrastructure teams to speed up deployments.
Why This Deal Matters
AI has turned power and compute into strategic assets, not just operating costs. Training and running large-scale AI models requires enormous electricity loads, and tech giants are increasingly trying to control both sides of the equation.
Alphabet’s move comes as rivals race to secure infrastructure:
- OpenAI has committed more than $1.4 trillion to data center and compute infrastructure
- Cloud providers and hyperscalers are increasingly co-locating power generation with data centers
- Energy access is now viewed as a bottleneck for AI growth, not just chips
With Intersect, Google gains tighter control over where and how new capacity is built.
What Intersect Brings to Google
Alphabet already owned a minority stake in Intersect, acquired during a funding round announced last December. At the time, Intersect said its partnership with Google and TPG Rise Climate targeted:
- Gigawatts of new U.S. data center capacity
- Up to $20 billion in renewable energy investment by 2030
- Integrated planning between power generation and data center demand
Under the acquisition, Intersect will collaborate directly with Google’s infrastructure teams, including on a co-located power and data center site in Haskell County, Texas.
Notably:
- Intersect’s California development assets are excluded
- Existing Texas operating assets are also excluded from the deal
Strategic Signal to the Market
Alphabet CEO Sundar Pichai framed the acquisition as a long-term competitiveness move:
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 U.S. innovation and leadership.
For investors, the message is clear:
AI winners won’t just own the best models — they’ll own the infrastructure that powers them.
What’s Next
- Alphabet’s capital spending on AI infrastructure is likely to remain elevated as competition escalates
- The transaction is expected to close in the first half of 2026
- The deal remains subject to customary regulatory and closing conditions
Read our recent coverage on Trump Media Merges With Fusion Power Firm TAE.
Explore more market insights on the WallStreetAccess homepage.
Disclaimer
WallStAccess does not work with or receive compensation from any companies mentioned. This content is for informational and educational purposes only and should not be considered financial advice. Always conduct independent research before investing.
