Alphabet(US:GOOGL) Xin Lang Cai Jing·2025-12-22 19:24Core Viewpoint - Alphabet, Google's parent company, has agreed to acquire Intersect for $4.75 billion to address the increasing energy demands driven by artificial intelligence (AI) development [2][6]. Group 1: Acquisition Details - The acquisition will be financed through cash and debt, targeting multiple data center projects and energy resources developed by Intersect [2][6]. - The deal is expected to enhance Alphabet's data center and power generation capabilities, with completion anticipated in the first half of 2026 [2][6]. - Alphabet has previously invested billions to maintain a competitive edge in AI development, which requires substantial data center and computing power [2][6]. Group 2: Intersect's Operations - Intersect will continue to operate independently under its brand, led by CEO Sheldon Kimber [2][6]. - Intersect has existing minority equity held by Google and is focused on building renewable energy plants to power data centers for AI computations [2][6]. - The companies aim to invest $20 billion in data center computing power by the end of the decade [2][6]. Group 3: Asset Management - Some of Intersect's assets will be acquired by existing investors and will not be part of the Alphabet acquisition, particularly those in Texas and California [3][7]. - Alphabet plans to explore various technologies to diversify energy supply while supporting Google’s data center investments in the U.S. to meet Google Cloud customer demands [3][7]. - Intersect will collaborate closely with Google’s infrastructure team on a co-located data center and power plant project in Haskell County, Texas, expected to be operational by 2026 and fully completed by 2027 [3][7].