Energy company TotalEnergies (TTE) has signed a 15-year deal with tech giant Google (GOOGL) to supply renewable electricity to its data centers in Ohio. The energy will come from the Montpelier solar farm, which is a nearly finished project that’s connected to PJM (the largest power grid in the United States). As a result, this is TotalEnergies’ second data center energy deal this month and supports Google’s goal of adding carbon-free energy to the areas where it operates.
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Notably, a TotalEnergies spokesperson stated that the agreement is also part of its strategy to serve the fast-growing data center industry, which made up nearly 3% of global power demand last year. In addition, Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, said that the deal highlights the company’s ability to meet the needs of major tech firms while working towards a 12% profitability goal in its power segment.
At the same time, Google’s Director of Clean Energy, Will Conkling, added that the project will help support local economic growth in Ohio. Although financial details weren’t shared, this agreement adds to TotalEnergies’ growing list of power supply deals with major firms like Amazon (AMZN), Microsoft (MSFT), and Merck (MRK).
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys and seven Holds assigned in the past three months. Furthermore, the average GOOGL price target of $312.29 per share implies 9.3% upside potential.
