Alphabet (GOOGL) has agreed to purchase solar power from a new project in Malaysia as it works to reduce emissions from its global operations. Under the deal, Google will purchase electricity from a 30-megawatt solar plant in Kedah. The project is being developed by a group led by a local unit of Shizen Energy, a Japan-based company, and is expected to begin operations in 2027.
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The agreement supports Google’s effort to power energy-heavy assets such as, data centers with cleaner electricity. This matters more in Asia, where power grids still rely heavily on fossil fuels. As a result, cutting emissions in the region has been slower and more complex for large technology firms.
Meanwhile, GOOGL shares dropped 1.01% on Friday, closing at $309.29.
Why the Deal Matters for Alphabet
Alphabet aims to run all data centers and offices on carbon-free power around the clock by 2030. It has also committed to cutting total emissions across its operations and supply chain by 50% by that same year. However, reaching these goals depends on local access to clean power, which varies widely by region.
In this case, Malaysia has become an important focus as cloud and AI demand grows across Southeast Asia. Therefore, locking in solar supply helps Alphabet support future data center growth while keeping emissions under control. Although 30 megawatts is small compared to Alphabet’s total power use, the deal fills a key regional gap in its clean energy plans.
For Alphabet, long-term power contracts can also help stabilize energy costs over time. In addition, they reduce exposure to future carbon rules and climate-related risks. While this deal will not change near-term earnings, it adds support to Alphabet’s broader sustainability story.
Overall, the Malaysian solar agreement is financially small but strategically useful. It supports AI-driven growth in Asia while modestly lowering long-term energy and policy risk.
What Is the Price Target for GOOGL Stock?
On the Street, Alphabet boasts a Strong Buy consensus, based on 36 analysts’ ratings. The average GOOGL stock price target is $323.64, implying a 4.64% upside from the current price.
