Alphabet (GOOGL) has announced plans to acquire Intersect, a fast-growing U.S. energy and data‑center developer. The deal is valued at $4.75 billion in cash plus the assumption of existing debt and is expected to close in the first half of 2026.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Interestingly, the acquisition points to the race among tech giants to secure the massive power and computing capacity needed to support surging demand for artificial intelligence (AI).
It is worth noting that Intersect has about $15 billion in energy projects operating or under construction, including large solar and battery‑storage facilities in Texas and California.
The deal includes Intersect’s power development platform, its team, and several data center and energy projects in development or under construction.
Importantly, Intersect’s existing operating assets in Texas and its assets in California are not included in the acquisition and will remain independent.
Why This Deal Matters
By acquiring Intersect, Google aims to speed up new power projects and better align energy development with its growing data center needs.
Also, Intersect’s portfolio provides Google with several gigawatts of future clean‑energy capacity, faster site deployment, and a more direct path to scaling U.S. AI infrastructure.
CEO Sundar Pichai said the acquisition will help Google “operate more nimbly in building new power generation in lockstep with new data center load” and “reimagine energy solutions to drive U.S. innovation and leadership”.
The deal comes as AI drives the biggest surge in U.S. electricity demand in decades. Tech giants such as Google, Amazon (AMZN), Microsoft (MSFT), and OpenAI (PC:OPAIQ) are racing to secure reliable, low-carbon power as they build massive new data centers. Google’s emissions alone have climbed 48% over the past five years due to the growing energy needs of AI workloads.
Is GOOGL Stock a Good Buy?
Turning to Wall Street, GOOGL has a Strong Buy consensus rating based on 28 Buys and seven Holds assigned in the last three months. At $326.41, the average Alphabet price target implies 5.59% upside potential. Shares of the company have gained 85.9% in the past six months.
