Alphabet to acquire Intersect for $4.75 billion in cash and debt to enhance data center capabilities.

Alphabet's Acquisition of Intersect: Alphabet announced it will acquire Intersect for $4.75 billion in cash, enhancing its data center space and energy infrastructure capabilities while allowing Intersect to operate independently post-purchase.

Competition in AI and Infrastructure: The acquisition aims to help Alphabet compete with OpenAI, which has heavily invested in data centers for its AI technology, as Alphabet seeks to match this pace with its own infrastructure expansion.

Texas as a Tech Hub: The partnership will focus on operations in Texas, where Google plans to invest $40 billion in new data center facilities, highlighting the state's growing importance as a destination for technology companies.

Exclusions from the Sale: Certain properties in California and some Texas operations will not be included in the sale and will remain with current investors, with the acquisition expected to finalize in the first half of 2026, pending approvals.