Google, a subsidiary of tech giant Alphabet (GOOGL), is investing in Intersect Power as it pushes to expand its number of artificial intelligence (AI) data centers. This has it joining TPG Rise Climate and others investing $800 million into the green energy company.
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Google’s interest in Intersect Power makes sense as it wants to quickly increase the number of data centers it operates. To achieve this, the company needs a green energy source to maintain its carbon emission goals. Investing in Intersect Power aligns with this strategy as it provides low-carbon power sources to its customers.
Google Forms Strategic Alliance with Intersect Power
Google is taking its relationship with Intersect Power even further with a strategic partnership that includes TPG Rise Climate. This agreement will have the three working together to create new data centers with adjacent power supplies. The first of these locations will launch operations in 2026 and reach full capacity the following year.
The current plan is to open several more locations similar to this across the U.S. After that, Google wants to go global with this green energy data center strategy by introducing it to several markets. This is beneficial as it increases power grid capacity to meet Google’s data center demands without stressing local infrastructure.
Considering the ongoing AI boom, Google’s plan seems like a fruitful one. The global AI market was worth more than $184 billion in 2024 and is expected to surpass $826 billion by 2030.
Is GOOGL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Alphabet is Strong Buy based on 27 Buy and seven Hold ratings. With that comes an average price target of $207.83, a high of $240, and a low of $170. This represents a potential 14.16% upside for GOOGL shares.
