Alphabet has agreed to acquire its long-time data center partner Intersect in a deal valued at approximately $4.75 billion, as the tech giant moves to secure critical infrastructure for its expanding cloud and artificial intelligence operations.
The acquisition will bring Intersect’s data center assets and development pipeline in-house, giving Google greater control over power supply, site development, and long-term capacity planning. Demand for computing power has surged as companies race to deploy AI models and scale cloud services.
Alphabet said the deal aligns with its strategy to invest heavily in infrastructure while improving efficiency and sustainability. Intersect has specialized in building large-scale data centers with access to renewable energy, a key priority for Google as it works toward its climate commitments.
Industry analysts say owning more of its data center footprint could help Alphabet manage rising costs and reduce reliance on third-party operators at a time when competition among cloud providers is intensifying. Rivals including Amazon and Microsoft have also ramped up spending on data center capacity.
The transaction is expected to close next year, subject to regulatory approvals. Once completed, it will mark one of Alphabet’s largest infrastructure-focused acquisitions and underline how central data centers have become to the future of AI-driven growth.
