Alphabet, Google’s parent company, will buy data centre infrastructure partner Intersect for US$4.75 billion (A$7.19 billion) with the goal of boosting its data centre capacity.
Google first took a minority stake in Intersect in 2024, and the companies are currently developing “multiple gigawatts of energy and data centre projects” together. The deal includes the assumption of debt as well as cash.
“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data centre load, and reimagine energy solutions to drive US innovation and leadership,” said Google and Alphabet CEO Sundar Pichai.
“Modern infrastructure is the linchpin of American competitiveness in AI. We share Google’s conviction that energy innovation and community investment are the pillars of what must come next,” said Intersect CEO Sheldon Kimber.
Intersect’s existing facilities in Texas and California are not included in the purchase and will continue as a separate company supported by its investors. It has around $15 billion in U.S. energy assets in operation or under construction.
The two companies partnered with investor TPG Rise Climate last year to develop industrial parks with gigawatts of data centre capacity and new renewable energy plants on-site. The first phase of these projects will be operational by 2026 and completed in 2027, Google said at the time.
The deal is expected to close in the first half of 2026, according to Alphabet.
Alphabet’s (NASDAQ: GOOG) share price closed at $309.78, up from its previous close at $307.16. Its market capitalisation is $3.75 trillion.
