Google parent company Alphabet (GOOGL) has announced plans to invest $9 billion in data centers located in South Carolina through 2027.
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The South Carolina investment will expand Alphabet’s existing Berkeley County data center and also support the construction of two new sites that will be situated in Dorchester County. Alphabet said the $9 billion investment will strengthen South Carolina’s position as a hub for artificial intelligence (AI) infrastructure.
The expansion is expected to create an unspecified number of new jobs. This latest funding announcement follows several other major infrastructure investments by Alphabet across the U.S. and internationally, including in the United Kingdom (U.K.) and Belgium.
Capital Expenditures
Like many other mega-cap technology companies, Alphabet is ramping up its capital expenditures, particularly as they relate to artificial intelligence (AI). Management at Alphabet has announced plans to spend $85 billion on AI and other projects this year alone.
While some analysts have raised concerns about the amount being spent on AI, Alphabet CEO Sundar Pichai has said that the heavy spending is needed to help the company retain its leadership position in artificial intelligence. The billions in funding have been earmarked for new servers, data center equipment, and accelerated construction of data centers.
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 29 Buy and eight Hold recommendations issued in the last three months. The average GOOGL price target of $253.66 implies 3.90% upside from current levels.
Read more analyst ratings on GOOGL stock