Alphabet to Acquire Intersect, a Data Center and Energy Infrastructure Company, for $4.75 Billion

Aditya Raghunath4 minute read
Reviewed by: Thomas Richmond
Last updated Dec 23, 2025

Key Stats for Alphabet Stock

  • Price Change for Alphabet stock: 0.9%
  • $GOOGL Share Price as of Dec. 22: $310
  • 52-Week High: $329
  • $GOOGL Stock Price Target: $329

Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>

What Happened?

Alphabet (GOOGL) stock jumped 0.9% today after Alphabet announced it will acquire Intersect, a data center and energy infrastructure company, for $4.75 billion in cash plus assumed debt.

The deal signals Google’s aggressive push to expand AI infrastructure and stay competitive in the rapidly growing artificial intelligence market.

The acquisition comes as tech giants race to build out massive data center capacity to support AI workloads.

OpenAI alone has committed over $1.4 trillion to infrastructure development since launching ChatGPT in 2022.

Google already held a minority stake in Intersect from a December funding round, making this acquisition a natural next step in their partnership.

GOOGL Stock Valuation Model (TIKR)

Intersect brings several gigawatts of energy and data center projects already in development or under construction.

The company will remain independent under its own brand and leadership, but will work closely with Google’s technical infrastructure team.

One significant project already underway is a co-located data center and power facility in Haskell County, Texas, part of Google’s $40 billion Texas investment through 2027.

See analysts’ growth forecasts and price targets for GOOGL stock (It’s free!) >>>

What the Market Is Telling Us About GOOGL Stock

The market’s positive reaction shows investors believe Google is making the right moves to compete in AI infrastructure.

Data centers require enormous amounts of power, and Intersect’s expertise in energy solutions addresses a critical bottleneck that many AI companies face.

CEO Sundar Pichai emphasized that Intersect will help Google “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.”

This ability to rapidly scale both power and computing capacity gives GOOGL stock a competitive edge.

The acquisition also demonstrates Google’s commitment to responsible energy expansion. Alphabet plans to invest in advanced technologies like geothermal power, long-duration energy storage, and carbon capture.

By building new energy capacity alongside data centers, Google aims to avoid passing costs onto existing grid customers.

The deal is expected to close in the first half of 2026, giving investors time to evaluate how effectively Google integrates these new capabilities.

With AI demand showing no signs of slowing, today’s rally suggests the market sees this as a smart strategic investment for GOOGL stock’s long-term growth.

Estimate a company’s fair value instantly (Free with TIKR) >>>

How Much Upside Does Alphabet Stock Have From Here?

With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.

All it takes is three simple inputs:

  1. Revenue Growth
  2.  Operating Margins
  3.  Exit P/E Multiple

If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

See a stock’s true value in under 60 seconds (Free with TIKR) >>>

Looking for New Opportunities?

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

Join thousands of investors worldwide who use TIKR to supercharge their investment analysis.

Sign Up for FREENo credit card required