Google Goes Big With $5B Deal

Alphabet, Google’s parent company, has reached an agreement to purchase Intersect Power, an energy and data center infrastructure provider, for $4.8 billion in cash, including the assumption of debt. This deal will allow for more data centers to come online, enhancing the facilities’ power capacity.

The tech giant had already been a minority stake owner in Intersect, following a partnership established last year.

The current transaction includes Intersect’s team and its data center and energy projects in various stages of development alongside Google. One such project is a property and power site underway in Haskell County, Texas—which is also part of the buyer’s plans to invest $40 billion throughout the Lone Star State by 2027.

One year ago, Google and Intersect partnered with TPG Rise Climate to invest $20 billion and deliver several gigawatts of new data center capacity throughout the U.S. by the end of the decade.

To kickstart this venture, Google was among the companies that led an $800 million funding round. Other companies involved in that deal included Climate Adaptive Infrastructure and Greenbelt Capital Partners.

Intersect will continue its operations separate from Alphabet and Google, with support from TPG, Climate Adaptive and Greenbelt. Its portfolio prior to this deal consisted of $15 billion of operating or under-construction infrastructure totaling 10.8 gigawatts.

North America’s share of global data center investment grows

At a global scale, data center investment—including mergers and acquisitions—clocked in at more than $61 billion year-to-date through November, according to S&P Global data cited by CNBC. That figure already overtook 2024’s grand total.

Activity across North America clocked in at $47.2 billion, making up more than 69 percent of the total deal volume across the entire world during the first 11 months of 2025, up from just 54 percent last year, the same source shows.

Next year’s investment figure already shows great promise as the Artificial Intelligence Infrastructure Partnership—including the likes of Microsoft, Nvidia, BlackRock and Kuwait Investment Authority—has agreed to acquire all equity in Aligned Data Centers, which is valued at $40 billion in this deal. The purchase will close in the first half of 2026.