Alphabet Acquires Intersect for $4.75 Billion to Boost AI Power

Dec 23, 2025, 2:30 AM

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Alphabet, the parent company of Google, has confirmed its agreement to acquire Intersect, a data center energy specialist, for $4.75 billion. This acquisition is part of Alphabet's strategy to secure the substantial electricity required to power its artificial intelligence (AI) technologies.

The deal marks a full buyout of Intersect, following a previous investment where Alphabet purchased a stake in the San Francisco-based startup last year. Intersect had raised a total of $2.1 billion from Google and other early investors prior to this acquisition.

Once the acquisition is finalized in the first half of next year, Alphabet plans to allow Intersect to operate independently. This approach is intended to enhance efforts to secure energy sources for the extensive data centers that are being developed to support AI services from Google and its competitors, including OpenAI.

The growing demand for energy from these data centers, often referred to as AI factories, has sparked concerns among local communities. Residents have reported rising electricity bills, interpreting them as a burden linked to the technology boom that could potentially face challenges in the future.

Intersect specializes in diversifying and increasing energy supply to help manage and reduce power costs. The company is already engaged in developing a data center for Alphabet in Haskell County, Texas.

Alphabet's advancements in AI have significantly impacted its financial performance, with the company's stock price increasing by over 60% this year, resulting in an additional $1.4 trillion in shareholder wealth.

This acquisition underscores Alphabet's commitment to ensuring that its AI initiatives are supported by reliable and cost-effective energy solutions, as the demand for AI capabilities continues to grow.

As the technology landscape evolves, Alphabet's strategic moves, such as this acquisition, reflect a broader trend of tech companies investing in energy solutions to sustain their operations and meet the increasing demands of AI technologies.

In summary, Alphabet's acquisition of Intersect is a significant step towards securing the energy resources necessary for its AI ambitions, while also addressing the challenges posed by rising energy costs in local communities.

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