WASHINGTON (dpa-AFX) - Alphabet, parent company to Google has agreed to acquire Intersect, a data center and energy developer, for $4.75 billion in an all-cash deal as it accelerates efforts to expand infrastructure needed for artificial intelligence.
The acquisition is aimed at strengthening Google's access to power for its rapidly growing network of data centers, which are critical to supporting AI workloads.
Intersect, a privately held San Francisco-based company, develops and operates data centers and energy plants. The two companies already had a working relationship, with Google investing in Intersect last December and collaborating on the construction of computing facilities.
Under the agreement, Google will acquire certain Intersect employees, data center projects, and multiple gigawatts of energy capacity. Google chief executive Sundar Pichai said the deal would help the company expand capacity more efficiently and align new power generation with rising data center demand, while also rethinking energy solutions to support U.S. innovation.
Intersect will continue to operate independently and retain its existing data centers in Texas and California that serve other customers.
The acquisition stands out in an industry where major tech firms typically rely on complex financing structures rather than outright purchases.
Google said the deal will help speed up its $40 billion investment in AI infrastructure in Haskell, Texas, through 2027.
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