Alphabet, the parent company of Google, has announced its acquisition of data center and energy infrastructure provider Intersect for $4.75 billion in cash. This move underscores the company's efforts to address the growing demands of artificial intelligence, where power supply and computing capacity have become key bottlenecks in scaling generative AI technologies.
According to the agreement, Alphabet will assume control of Intersect's extensive array of projects, which encompass several gigawatts of energy and data center developments that are presently being built.
"Today, Alphabet announced a definitive agreement to acquire Intersect, which provides data center and energy infrastructure solutions. The acquisition will enable more data center and generation capacity to come online, faster, while accelerating energy development and innovation," the company said in a statement.
Under the agreement, Intersect will investigate new technologies to broaden energy sources, particularly aiding Google's extensive data center investments throughout the United States. To ensure seamless operations, the company will remain a distinct brand within Alphabet. Its existing operating assets in Texas and its California-based projects are excluded from this acquisition.
The Intersect agreement is a component of Google's larger plan to support its energy-intensive AI infrastructure. Earlier, the French energy giant TotalEnergies announced a 21-year power supply deal with Google to back its data centers in Malaysia. In November, TotalEnergies also committed to providing energy for Google's high-capacity data centers in Ohio.