CAI Announces Alphabet Agreement to Acquire Intersect to Advance U.S. Energy Innovation

On December 22, Alphabet announced a definitive agreement to acquire Intersect, which provides data center and energy infrastructure solutions, for $4.75 billion in cash, plus the assumption of debt. The acquisition will enable more data center and generation capacity to come online, faster, while accelerating energy development and innovation.

Included in the transaction are Intersect’s multiple gigawatts of energy and data center projects in development, or under construction, including those in its successful existing partnership with Google. Intersect’s operations will remain separate from Alphabet and Google under the Intersect brand and will be led by Sheldon Kimber. It will partner closely with Google’s technical infrastructure team, continuing work on new, joint projects; including the companies’ first announced co-located data center and power site, under construction in Haskell County, Texas.

The Climate Adaptive Infrastructure team has worked closely with Intersect since its inception in 2016. Bill Green led the founding investment in 2017, after which the company was sold to SoftBank. In 2020, CAI’s inaugural Fund I led the round that purchased Intersect back from SoftBank, creating the foundation for today’s company. Sheldon, Bill and the Intersect and CAI teams have worked and invested in partnership now for over a decade.

Intersect’s existing grid-tied operating assets in Texas, and its operating and in-development assets in California, will not be part of the Google acquisition. Those assets continue to operate as an independent company, supported by CAI and other existing investors TPG Rise Climate and Greenbelt Capital Partners. Key Intersect team members will lead this ongoing project team.

Sundar Pichai, CEO of Google and Alphabet said, “Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership.”

“Intersect has always been focused on bringing innovation to the industry and we look forward to accelerating at scale as part of Google,” said Sheldon Kimber, founder and CEO, Intersect. “Modern infrastructure is the linchpin of American competitiveness in AI. We share Google’s conviction that energy innovation and community investment are the pillars of what must come next.”

“This is a thoughtful strategic acquisition by Google to augment their ongoing commitment to unlocking abundant, reliable, affordable energy supplies that enable the buildout of data center infrastructure without passing on costs to grid customers,” said CAI Managing Partner Bill Green. “The Intersect team has done path-breaking work driving large load pairing with generation, and this is just the first example of how this strategy end-runs grid constraints. Working alongside Sheldon and this team has been one of the most rewarding parts of my professional journey and I can’t wait to see what comes next!”

The Google acquisition is subject to customary closing conditions and is expected to close in the first half of 2026.

About Climate Adaptive Infrastructure

Founded in 2019, Climate Adaptive Infrastructure (“CAI”) is an infrastructure investment firm specializing in low-carbon real assets in the energy, water and urban infrastructure sectors. The firm seeks investments across core infrastructure assets that improve sustainability and quality of life for the world’s large and growing population. CAI selects, finances, constructs and manages its investments using climate screens and metrics designed to enhance investment returns and reduce carbon emissions. Learn more: climateadaptiveinfra.com

Contact: info@climateadaptiveinfra.com

About Intersect

Intersect delivers next generation infrastructure for data centers and other energy-intensive industries by co-locating industrial demand with dedicated gas and renewable power generation. Our approach delivers the fastest, cheapest, cleanest and most reliable energy and infrastructure solutions for our customers and the inevitable scale of what comes next. We have $15 billion of assets in operation or under construction across the U.S. states. Learn more: Intersect.com

Forward-Looking Statements

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause Alphabet Inc.'s (the “company”, “we”, “us” or “our”) actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the risk that the closing conditions for the acquisition will not be satisfied, including the risk that the requisite regulatory approvals will not be obtained; the risk that the definitive agreement relating to the acquisition will be terminated prior to closing; the possibility that the acquisition will not be completed in the expected timeframe or at all; potential adverse effects to the businesses of the company or Intersect during the pendency of the acquisition; our ability to successfully integrate Intersect or other businesses that we may acquire in the future; our ability to achieve the benefits that we expect to realize as a result of the acquisition of Intersect; the potential negative impact on our financial condition and results of operations if we fail to achieve the benefits that we expect to realize as a result of the acquisition of Intersect or if these benefits take longer to achieve than expected; and other risks and uncertainties discussed in the reports the company has filed previously with the SEC, such as its Annual Report on Form 10-K. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, which speak as of the respective date of this release, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.