Google’s parent company says the deal will strengthen U.S. energy capacity for data centers as artificial intelligence drives soaring electricity demand.
By yourNEWS Media Newsroom
Alphabet, the parent company of Google, announced Monday that it will acquire data center and energy infrastructure firm Intersect for $4.75 billion in cash, along with the assumption of debt, in a move aimed at securing reliable power for the rapid expansion of artificial intelligence infrastructure.
Although Google already owns a majority stake in Intersect, the newly announced deal will give Alphabet full control while keeping Intersect’s operations separate, the company said. Alphabet framed the acquisition as a way to accelerate the buildout of AI-related data centers while aligning power generation with rising electricity demand.
The move comes as U.S. energy consumption climbs and as projected electricity needs from AI data centers increase sharply. Major technology companies have been racing to secure dependable energy sources, with some even exploring the revival of nuclear power plants to meet future demand.
“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,” Google and Alphabet CEO Sundar Pichai said in a statement. “We look forward to welcoming Sheldon and the Intersect team.”
Alphabet said the acquisition will support its broader strategy of working with utilities and energy developers to unlock “abundant, reliable, affordable energy supply” needed for large-scale data center development, while avoiding additional costs for existing grid customers.
Intersect founder and CEO Sheldon Kimber said the company’s mission aligns closely with Google’s long-term goals. “Intersect has always been focused on bringing innovation to the industry and we look forward to accelerating at scale as part of Google,” Kimber said. “Modern infrastructure is the linchpin of American competitiveness in AI.”
The transaction echoes messaging from the Trump administration emphasizing U.S. leadership in artificial intelligence. Earlier this month, President Donald Trump signed an executive order establishing what the White House described as a national policy framework for AI.
“We remain in the earliest days of this technological revolution and are in a race with adversaries for supremacy within it,” the order states.
Trump has repeatedly stressed the importance of rapidly expanding data center infrastructure to maintain the United States’ competitive edge. At the same time, resistance has emerged at the local level, where some communities have protested new data center projects over concerns about rising electricity prices, water usage, and the impact on rural land.
Alphabet said the Intersect acquisition is intended to address those challenges by pairing data center growth with new power generation, as the company positions itself to meet the energy demands of the expanding AI economy.
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