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Alphabet Bets $4.75 Billion on Intersect to Accelerate Data Center Expansion Amid AI Arms Race

Alphabet Bets $4.75 Billion on Intersect to Accelerate Data Center Expansion Amid AI Arms Race

Published:
2025-12-22 20:13:01
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BTCCSquare news:

Alphabet Inc. will acquire Intersect for $4.75 billion in cash plus debt, marking its largest infrastructure play since 2021. The deal turbocharges Google's data center capacity as it races to counter OpenAI's $1.4 trillion infrastructure push. Intersect's Texas operations will anchor a new generation of AI-ready facilities.

The acquisition reflects Silicon Valley's escalating capital intensity in artificial intelligence. Where cloud providers once competed on software, the new battleground is megawatt-scale computing power. Google's $40 billion Texas commitment through 2027 now appears conservative against rivals building 'AI factories.'

Intersect brings critical power infrastructure expertise at a pivotal moment. Its Haskell County development will combine next-generation data centers with dedicated clean energy generation - a model Alphabet hopes will differentiate its cloud offering. The deal follows Google's December 2023 strategic investment in Intersect.

|Square

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