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.”