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genai/news//Markets Insider
Shares in Google parent Alphabet (GOOGL) edged lower in after-hours trading on Thursday.
Google is building the Meitner Energy Center, a new data center in Texas powered primarily by clean energy.
KEY POINTS
Google is collaborating with Intersect, which it acquired in March for $4.5 billion, to develop this facility.
Alphabet plans to more than double its capital spending on AI, reaching up to $190 billion this year.
Alphabet seeks to raise $84.75 billion in equity financing to fund its AI infrastructure expansion.
Shares in Google parent Alphabet (GOOGL) edged lower in after-hours trading on Thursday after the U.S. tech giant announced that it was building a new data center in Texas. This came amid investor worries about the company’s plans to more than double its capital spending on AI, to up to $190 billion this year.
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Google Builds New Data Center in Texas
On Thursday, Google announced that it had begun construction of the Meitner Energy Center, a clean energy hub that will also house a new data center. The company is working with Intersect, the renewable energy developer it finished acquiring in March in a $4.5 billion deal, to build the facility in Gray and Roberts counties in Texas.
According to Google, the new data center will be supplied with more than one gigawatt of power from wind and solar sources, as well as battery storage systems. It noted that the facility will be powered mostly by clean energy sources, with only a minority coming from on-site gas.
“The data center will join Google’s global network that powers services people and businesses rely on every day, including Search, Gmail, Maps, Cloud, online banking, and 911 systems,” the companies said in a statement.
Google Banks on Debt and Equity to Fund AI Buildout
The new data center joins other such Google facilities under construction in Armstrong, Haskell, and Wilbarger Counties in Texas. Already, the tech giant has data center campuses in Midlothian and Red Oak in Ellis County, Texas.
Meanwhile, the construction of the new data center comes as Alphabet is turning to outside capital, both debt and equity, to fund its AI buildout. The company is currently looking to raise $84.75 billion in equity financing to achieve this goal.
Is Alphabet Stock a Buy or Hold?
On Wall Street, Alphabet’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down into 28 Buys and five Holds assigned by 33 analysts over the past three months.
In addition, the average GOOGL price target of $427.46 suggests about 15% upside in the months ahead.