Tech giant Alphabet’s (GOOGL) Google has committed £5 billion ($6.8 billion) in new artificial intelligence (AI) investments in the UK ahead of U.S. President Donald Trump’s visit to the country from September 16 to 18. The visit is expected to involve announcements of multiple deals and partnerships. Meanwhile, Google announced the opening of its data center in Waltham Cross, Hertfordshire, as part of the £5 billion investment.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Google expects the state-of-the-art data center to meet the rising demand for the company’s AI-powered services like Google Cloud, Workspace, Search, and Maps.
Meanwhile, Alphabet has joined the $3 trillion market cap club, following a notable rally in its shares in reaction to a more favorable-than-feared antitrust ruling by a judge.
Google Pledges Huge AI Investments in the UK
Google’s £5 billion investment includes capital expenditure, research and development, and related engineering over the next two years. The company expects its AI investments to help the UK develop its AI capabilities, while enhancing cybersecurity and creating job opportunities. In fact, Google’s investment is estimated to create 8,250 jobs annually in the country. Meanwhile, the company also announced a new agreement with oil giant Shell (SHEL) to advance energy grid stability and capacity. Google expects its UK operations to run at or near 95% carbon-free energy in 2026.
Several other companies are expected to announce new deals, as British Prime Minister Keir Starmer’s Labour government strives to attract investments to revive a sluggish economy and regain momentum in national opinion polls. According to Reuters, senior U.S. officials have said that economic deals worth over $10 billion would be announced during Trump’s visit.
Many tech giants have already announced significant investments to capitalize on AI opportunities in Europe. In July, Oracle (ORCL) announced that it would invest $3 billion to expand its AI and cloud infrastructure in Germany and the Netherlands over the next five years. Furthermore, in October, Microsoft (MSFT) revealed its plans to invest about €4.3 billion ($4.75 billion) over two years in cloud and AI infrastructure in Italy.
Last year, Amazon (AMZN) committed to investing a total of €17.8 billion ($20.9 billion) through 2040 to expand its logistics network and cloud infrastructure in Germany. The e-commerce and cloud computing company also announced plans to invest €15.7 billion over the next decade to expand its cloud services in Spain.
Is GOOGL Stock a Buy, Sell, or Hold?
Currently, Alphabet scores Wall Street’s Strong Buy consensus rating based on 28 Buys and nine Holds. The average GOOGL stock price target of $235.97 indicates 6.2% possible downside from current levels. GOOGL stock has rallied 33% year-to-date.
