Earlier today, tech giant Google (GOOGL) announced that it will invest $25 billion over the next two years to grow its artificial intelligence and data center infrastructure across the United States. A major part of that investment includes $3 billion to upgrade two hydroelectric plants in Pennsylvania (Holtwood and Safe Harbor) that are located about 75 miles from Philadelphia. The $3 billion deal is part of a clean energy agreement between Google and Brookfield Asset Management (BAM). Under this agreement, Google will purchase up to 3,000 megawatts of hydropower, thereby making it the world’s largest corporate deal for hydroelectric energy. The agreement is set for 20 years and may be extended further.
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These projects are focused on meeting the rising energy demands from AI and data centers, especially in the PJM Interconnection, which is the largest electric grid in the country and covers 13 states. Interestingly, the announcement was made during the Pennsylvania Energy and Innovation Summit at Carnegie Mellon University, where President Donald Trump, members of his administration, and business leaders met to discuss AI and energy investment.
Google’s move comes as other tech giants also face the challenge of powering massive AI systems. As electricity needs grow quickly, this has led to renewed interest in nuclear power, gas plant construction, and increased demand for large turbines. However, recent policy changes, such as the end of renewable energy tax credits, could slow down progress in clean energy systems. Nevertheless, Google’s long-term hydroelectric deal with Brookfield is a major step forward in securing reliable, low-carbon power for the company.
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 28 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $202.24 per share implies 10.2% upside potential from current levels.
