Alphabet, the parent company of Google, has agreed to acquire Intersect, a data center, energy infrastructure solutions provider for US$ 4.75 billion in cash, plus the assumption of debt, the company announced. Google already owns a minority stake in Intersect from a prior funding round.
In a press release Alphabet revealed that the deal is intended to speed the development of new data center capacity and power generation to support Google’s growing infrastructure needs, particularly as demand rises from cloud services and artificial intelligence workloads. Intersect supplies multiple energy GW and data center projects that are either under construction or in development through its existing partnership with Google.
Sundar Pichai, CEO of Google and Alphabet, said, “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 US innovation and leadership.”
Sheldon Kimber, founder and CEO, said, “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.”
Alphabet will acquire Intersect’s development platform and team as part of the transaction. Intersect will continue to work on joint projects with Google, including a co-located data center and power site currently under construction in Haskell County, Texas. The company will also pursue emerging energy technologies aimed at expanding and diversifying power supply.
Intersect will remain operationally separate from Alphabet and Google, and will continue to operate under the Intersect brand. Founder and CEO Sheldon Kimber will continue to lead the company and work closely with Google’s technical infrastructure organization.
Not all of Intersect’s assets are included in the acquisition. Its existing operating assets in Texas, as well as operating and in-development assets in California, are excluded and will continue to operate independently. Those assets will remain backed by investors TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners. Intersect said customers of those assets should expect uninterrupted service.
