Alphabet to acquire data center and energy infrastructure company Intersect

Key Points

* Google parent Alphabet said it will acquire Intersect, a data center company, for for $4.75 billion in cash and the assumption of debt.
* Alphabet said the acquisition will help bring more data center and generation capacity online faster.
* Google already had a minority stake in Intersect from a previous funding round.

Google parent Alphabet on Monday announced it will acquire Intersect, a data center and energy infrastructure company, for $4.75 billion in cash in addition to the assumption of debt.

Alphabet said Intersect’s operations will remain independent, but that the acquisition will help bring more data center and generation capacity online faster.

In recent years, Google has been embroiled in a fierce competition with artificial intelligence rivals, namely OpenAI, which kickstarted the generative AI boom with the launch of its ChatGPT chatbot in 2022. OpenAI has made over $1.4 trillion of infrastructure commitments to build out the data centers it needs to meet growing demand for its technology.

With its acquisition of Intersect, Google is looking to keep up.

“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,” Sundar Pichai, CEO of Google and Alphabet, said in a statement.