Tech Behemoth Gobbles Up Power Company In $5 Billion Deal To Juice Data Centers

Google’s parent company, Alphabet, announced on Monday that it will acquire the data center and energy infrastructure company Intersect for $4.75 billion in cash and “the assumption of debt.”

Though Google already owns a majority stake in the company, the deal will further support the Big Tech company’s build-out of artificial intelligence (AI) infrastructure while keeping Intersect’s operations separate, according to Alphabet. As America’s energy demand climbs while projected AI data center needs skyrocket, Big Tech has been searching for reliable electricity sources — with some companies looking to resurrect nuclear plants.

“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. We look forward to welcoming Sheldon and the Intersect team,” CEO of Google and Alphabet Sundar Pichai said in a statement Monday.

Alphabet notes that this acquisition “will augment Alphabet and Google’s ongoing commitment to partnering with utilities and energy developers across the sector to unlock abundant, reliable, affordable energy supply that enables the buildout of data center infrastructure without passing on costs to grid customers.”

“Intersect has always been focused on bringing innovation to the industry and we look forward to accelerating at scale as part of Google,” Sheldon Kimber, Intersect founder and CEO, said in a statement Monday. “Modern infrastructure is the linchpin of American competitiveness in AI. We share Google’s conviction that energy innovation and community investment are the pillars of what must come next.”

The Trump administration has advanced similar messaging promoting U.S. dominance in the AI industry, signing an executive order on Dec. 11 that decrees a “national policy framework for AI.”

“We remain in the earliest days of this technological revolution and are in a race with adversaries for supremacy within it,” the Dec. 11 executive order reads.

While President Donald Trump stresses the vitality of building out data center infrastructure to keep America’s competitive edge in the AI race, some local communities have been protesting data center development over concerns the facilities will spike electricity costs, take up rural land and drain water resources.