Google’s $4.75 Billion Data Center Acquisition: What It Means for Tech Investments and Business Growth Opportunities
SEATTLE — Google has announced its agreement to acquire Intersect, a data center and energy developer, for $4.75 billion in an all-cash transaction. This move supports Google’s efforts to expand its infrastructure for artificial intelligence (AI).
Intersect, a privately held company based in San Francisco, specializes in operating data centers and energy plants. The company has previously collaborated with Google to develop computing facilities, with Google making an investment in Intersect last December. The acquisition will enhance Google’s ability to increase power supply to its data centers, which are critical to AI operations.
“Intersect will help us expand capacity, operate more nimbly in building new power generation in lock step with new data center load and reimagine energy solutions to drive U.S. innovation and leadership,” stated Sundar Pichai, CEO of Google.
Google did not receive a response from Intersect for comment.
The deal comes amidst intense competition among leading tech companies—including Google, Amazon, Meta, Microsoft, and OpenAI—all investing billions in building global data centers to gain an edge in AI development. These companies often employ creative financial structures to finance construction, such as involving smaller firms to assume debt and keep investments off their balance sheets.
Acquiring a data center or energy company outright is uncommon. Google’s mergers and acquisitions activity has historically been moderated by regulatory scrutiny over potential monopolistic practices, especially in internet search. Although Google has been found to have violated antitrust laws in recent years, the repercussions have been relatively minor.
According to Google, the acquisition includes certain Intersect employees, data center projects, and several gigawatts of energy capacity. Intersect will continue as a separate entity, retaining some data centers in Texas and California that serve its other customers.
The transaction will notably accelerate the development of Google’s AI infrastructure in Haskell, Texas, where the company plans to invest $40 billion by 2027.
This article originally appeared in The New York Times.
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