Alphabet Bets $4.75B on Data Center Energy Specialist Intersect to Power AI Boom

• Alphabet Inc. (GOOG, GOOGL) has agreed to acquire Intersect for $4.75 billion in cash plus assumed debt to secure clean energy capacity for its expanding AI data centers, with the deal expected to close in early 2026.
• The acquisition targets Intersect’s in-development and under-construction projects, including a co-located data center and power site in Haskell County, Texas, while existing operating assets remain independent.
• Alphabet is supporting AI infrastructure growth through increased 2025 capital spending of $92 billion (midpoint), partnerships in nuclear energy, and investments like Fluidstack, which has secured a major colocation agreement with Cipher Mining (CIFR).

Alphabet Inc. (GOOGL), the parent company of Google (GOOG), has agreed to acquire Intersect, a developer of data center and clean energy infrastructure, for $4.75 billion in cash plus the assumption of debt. The transaction aims to accelerate the deployment of power generation capacity to support the rapid expansion of Google’s artificial intelligence infrastructure. Alphabet already held a minority stake in Intersect from a prior investment.

The acquisition focuses on Intersect’s projects in development or under construction, providing multiple gigawatts of energy and data center capacity. Intersect’s operations will continue separately under its existing brand and leadership, with close collaboration on joint initiatives, including a co-located data center and power site in Haskell County, Texas. Existing operating assets in Texas and operating or in-development assets in California will remain independent, supported by investors such as TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners.

This move addresses the surging electricity demands of AI data centers, where reliable, scalable power is essential for maintaining operational efficiency and advancing U.S. innovation in the field. Alphabet CEO Sundar Pichai emphasized that Intersect will enable faster capacity expansion and agile power generation aligned with data center growth.

Beyond solar-focused projects, Alphabet pursues a diversified energy strategy, including nuclear power through partnerships with NextEra Energy, Kairos Power, and Commonwealth Fusion Systems to explore small modular reactors for future needs.

Alphabet’s commitment to AI infrastructure is evident in its capital spending plans. The company raised its 2025 guidance to $92 billion at the midpoint, an 8% increase from the prior $85 billion estimate, with the majority directed toward AI cloud infrastructure.

In parallel, Alphabet supports startup Fluidstack, a provider of high-performance computing clusters. Cipher Mining (CIFR), a developer and operator of industrial-scale data centers, has secured multiple agreements with Fluidstack, including a 10-year high-performance computing (HPC) deal for 168 MW at its Barber Lake site in Texas, generating approximately $3 billion in contracted revenue over the initial term, with potential extensions.

Alphabet shares traded up fractionally to $309.39 in midday trading on the announcement date, contributing to a year-to-date gain of about 63% in 2025. While AI-related stocks have experienced volatility due to concerns over returns on massive investments, rising debt levels, and depreciation accounting for semiconductors, Alphabet continues to integrate AI across its core products, including search, digital advertising, cloud computing, Waymo, YouTube, Gmail, Workspace, and Maps.

The deal is expected to close in early 2026, subject to customary conditions.

WallStreetPit does not provide investment advice. All rights reserved.

• Bulenox: Get 45% to 91% OFF ... Use Discount Code: UNO
• Risk Our Money Not Yours | Get 50% to 90% OFF ... Use Discount Code: MMBVBKSM