In what’s being called the biggest clean energy deal of all time, Google parent company Alphabet (GOOGL) has agreed to buy three gigawatts of hydropower from Brookfield Asset Management (BAM).
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The deal to source the hydroelectricity comes as Alphabet looks to secure reliable energy sources to power its artificial intelligence (AI) data centers. The deal between Alphabet and Brookfield includes an initial 20-year power purchase agreement, totaling $3 billion, for electricity generated from two hydropower facilities located in Pennsylvania.
Alphabet has also agreed to invest a total of $25 billion in data centers across Pennsylvania and other U.S. states over the next two years. The search engine giant is one of many technology companies that is looking to acquire massive amounts of clean electricity to power current and future AI data centers.
Clean Energy
In a written statement, Alphabet said that its “collaboration with Brookfield is a significant step forward, ensuring clean energy supply where we operate.” This is the latest in a series of power purchase agreements that Alphabet has struck over the past year.
The Silicon Valley-based tech giant has also sourced carbon-free geothermal energy and advanced nuclear energy for its growing AI data centers. The company is also working with the largest American electricity operator, PJM Interconnection, to use AI to speed up the process of hooking up new power supplies to the U.S. grid. GOOGL stock has declined 3% this year.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 28 Buy and nine Hold recommendations issued in the last three months. The average GOOGL price target of $202.24 implies 10.62% upside from current levels.
