This article first appeared on GuruFocus.
Alphabet (GOOGL, Financials) announced plans to acquire Intersect, a privately held developer of data and energy infrastructure, for $4.75 billion in cash. The purchase, which includes Intersect’s debt, aims to secure energy and real estate assets vital to supporting Alphabet’s expanding AI operations.
Intersect will remain an independent brand under founder Sheldon Kimber but will integrate closely with Google’s infrastructure division. The company specializes in data parks that combine renewable energy sources such as solar, wind, and battery storage with high capacity data centers.
Alphabet said the acquisition will allow it to expand computing capacity more quickly and reduce dependence on local power grids a growing challenge for tech companies scaling AI workloads. CEO Sundar Pichai described the deal as a move to grow smarter and faster while supporting national energy and technology goals.
The transaction is expected to close in the first half of 2026, pending regulatory approval. Alphabet’s stock edged higher, closing at $309.78.
