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Alphabet’s Google (GOOGL) Supercharges Energy Ambitions with PJM Collaboration

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Google partners with PJM to bring AI brains to the U.S. electricity grid.

Alphabet’s Google (GOOGL) Supercharges Energy Ambitions with PJM Collaboration

Tech giant Alphabet’s (GOOGL) Google is collaborating with PJM Interconnection to deploy AI tools that speed up the connection of new energy sources. The partnership with PJM, which is the largest electrical grid operator in North America, marks the first-ever use of AI to fully streamline the power grid’s connection process.

More Details on the Partnership

As part of this partnership, Tapestry, built with Google Cloud and DeepMind, will use smart AI tools to help PJM run its electric grid better. This grid covers D.C. and 13 states in the Mid-Atlantic and Midwest. As a result, the collaboration will help accelerate the process of connecting new energy sources like wind, solar to the grid. Overall, the goal is to make power more steady and lower the cost for the 67 million people PJM supports.

Notably, Tapestry is a tool developed by Google to enhance data infrastructure and decision-making using AI and advanced analytics.

In the longer term, Google, Tapestry, and PJM plan to build a digital model of the PJM grid, like Google Maps for energy. This tool will let planners see different layers of grid data with a simple on/off view, helping them make quicker decisions, gain new insights, and spot ways to work more efficiently.

AI Meets Energy

While people have talked about building smarter power grids for years, Google believes that AI now gives a real chance to make it happen. Moreover, with tech giants racing to build data centers for AI development, electricity demand is climbing fast.

However, in recent years, wait times to connect new power sources, like solar, wind, and natural gas, to the grid have become very long. These delays are causing energy shortages in many areas, raising power costs, and increasing the risk of blackouts. That’s because older power plants are shutting down faster than new ones can be added.

This is where Google’s partnership with PJM steps in. By leveraging AI, the collaboration aims to accelerate the process, ensuring faster, more efficient power delivery.

Are Google Shares a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on GOOGL stock based on 27 Buys and 10 Holds assigned in the past three months. The average GOOGL price target of $206.82 per share implies a 30.3% upside potential.

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