Alphabet has announced it will buy Intersect, a company that works on data center and energy infrastructure solutions, for USD 4.75 billion in cash, plus taking on some of its debt. Google already owns a small stake in Intersect from an earlier investment round.
This deal will help build more data centers and energy consulting projects more quickly and support energy innovation. It also includes Intersect’s expert team and several large projects in the works, many of which are developed with Google.
Intersect will continue operating under its own name, led by Sheldon Kimber, but will work closely with Google’s technical team on joint projects, like a new data center and power site being built in Texas.
Some of Intersect's existing projects in Texas and California will stay separate from this deal and operate independently with support from other investors.
This acquisition supports Alphabet and Google’s goals to increase the supply of affordable and reliable energy for their data centers without raising costs for local electricity customers. It will also help in the development of new energy technologies, like geothermal energy, energy storage, and carbon capture.
Executive Statement
According to Sundar Pichai, CEO of Google and Alphabet, intersect will help them 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. They look forward to welcoming Sheldon and the Intersect team.
According to Sheldon Kimber, founder and CEO, Intersect, intersect has always been focused on bringing innovation to the industry and they look forward to accelerating at scale as part of Google. Modern infrastructure is the linchpin of American competitiveness in AI. They share Google’s conviction that energy innovation and community investment are the pillars of what must come next.