This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL), Google's search, cloud and artificial-intelligence parent, dropped to $333.535 Tuesday. But the selloff did not stop Google from locking down more power for its AI machine. Fervo Energy will supply 396 megawatts of round-the-clock geothermal electricity from its Cape Station project in Utah.
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That is only the opening move. Google can purchase another 600 megawatts, potentially pushing the total to 996 megawattsjust four megawatts short of one gigawatt. Cape Station is expected to come online in 2028, and Google has until June 2030 to exercise the expansion option. Financial terms remain undisclosed.
Alphabet poured $44.9 billion into capital projects during the second quarter, with roughly 40% of technical-infrastructure investment aimed at data centers and networking. The valuation picture is already demanding: Alphabet's $333.535 share price stands 32.52% above its $251.68 GF Value. Chips may power the AI race, but without dependable electricity, those expensive data centers are just giant buildings full of idle hardware.
