Google to Acquire Data Center Developer Intersect in $4.75 Billion AI Infrastructure Push
Google has agreed to acquire Intersect, a data center and energy development company, in an all-cash deal valued at $4.75 billion, as the tech giant accelerates investment in infrastructure to support artificial intelligence.
The acquisition is expected to strengthen Google’s access to power for its data centers—large-scale facilities that underpin AI computing. Intersect, a privately held San Francisco-based company that develops and operates data centers and energy assets, has already been collaborating with Google on several projects. Google also took a stake in the company in December.
“Intersect will help us expand capacity, move faster in developing new power generation alongside data center growth, and rethink energy solutions that support U.S. innovation and leadership,” Google Chief Executive Sundar Pichai said in a statement.
Intersect did not respond to requests for comment.
The deal comes as Google and rivals including Amazon, Meta, Microsoft, and OpenAI pour billions of dollars into building data centers worldwide in a race to lead in AI. Many companies have relied on complex financing structures—often involving smaller partners taking on debt—to fund construction while limiting balance-sheet exposure.
Direct acquisitions of data center or energy developers, however, have been uncommon. Google’s merger activity has been constrained in recent years by regulatory scrutiny over its market dominance, particularly in online search. While the company has faced antitrust violations, penalties to date have been relatively modest.
Under the agreement, Google will take on some of Intersect’s employees, select data center projects, and several gigawatts of energy capacity. Intersect will spin off certain facilities in Texas and California that serve other customers into a separate company.
Google said the transaction will help accelerate the expansion of its AI infrastructure in Haskell, Texas, where it plans to invest $40 billion through 2027.
