Alphabet announced Monday it will acquire Intersect, a data center and energy infrastructure provider. The definitive agreement is valued at $4.75 billion in cash, plus the assumption of debt.
The tech giant makes this strategic purchase to bolster infrastructure supporting its growing artificial intelligence ambitions. Specifically, the deal grants Google access to more power generation for its data centers.
This move addresses industry-wide challenges as aging US power grids struggle to meet booming electricity demand driven by AI, new factories, and economic electrification.
Under the terms, Alphabet gains Intersect's team and multiple gigawatts of energy and data center projects. These projects are currently under development or construction. The transaction excludes Intersect's existing operating assets in Texas and California.