Google Announces New Data Centers in Texas and Minnesota
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy GOOG?
Google (GOOGL) announced two new data centers in Wilbarger County, Texas and Pine Island, Minnesota. "We're expanding our longstanding presence in Texas with a new data center under construction in Wilbarger County and agreements to support local energy resilience, anchored by a focus on water security and energy affordability," the company said in a blog post. "The data center will use advanced air-cooling technology, limiting water consumption to only critical campus operations like kitchens. It will be co-located with - or built alongside - new clean power developed by AES (AES)." The company said in a separate post that Pine Island, Minnesota will be the future home of a Google data center. In collaboration with the city and Xcel Energy (XEL), the search giant is "committed to bringing high-quality jobs, economic growth and education initiatives to the community." "With Xcel Energy supplying energy for the new data center, Google will pay all costs associated with our electric service," Google said. "In order to accelerate clean energy deployment without shifting costs to local customers, Google and Xcel Energy designed a new contract structure in Minnesota, the Clean Energy Accelerator Charge (CEAC), a model that uses the same structure as the Clean Transition Tariff (CTT) Google developed with NV Energy."
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 311.430
Low
255.00
Averages
336.08
High
400.00
Current: 311.430
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Information Lag: Investors receive a snapshot of hedge fund managers' moves about 45 days after the quarter ends, making it less effective for short-term trading, especially for managers who frequently trade.
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- Tepper's Stake Reduction: David Tepper reduced his Nvidia stake by about 10% and Amazon stake by 13% in Q4, raising eyebrows as both stocks have been long-term winners, suggesting he may be taking profits or reallocating funds for other investments.
- Investor Information Lag: Investors receive a snapshot of hedge fund managers' moves about 45 days after the quarter ends, making it less effective for short-term trading, especially for managers who frequently trade.
- Increased AI Stock Holdings: Tepper increased his stakes in Alphabet, Micron Technology, and Meta Platforms by 29%, 200%, and 62% respectively in Q4, indicating a bullish outlook on the AI data center buildout despite reducing positions in Nvidia and Amazon.
- Memory Chip Market Outlook: Micron's stock has surged nearly 50% in 2026 due to a memory chip shortage driven by data center expansion, and this trend is expected to last for several years, potentially supporting Micron's long-term stock price and outperforming other AI-related stocks.
See More
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- Reduction Strategy Analysis: Tepper reduced his Nvidia stake by about 10% and Amazon by 13% in Q4, which may indicate profit-taking and sensitivity to market fluctuations, while also freeing up capital for other investments.
- Portfolio Diversification: Despite the reductions in Nvidia and Amazon, Tepper increased his stakes in Alphabet, Micron, and Meta by 29%, 200%, and 62% respectively, reflecting his bullish outlook on AI data center buildout and a desire to diversify risk.
- Memory Chip Market Outlook: Micron's stock has surged nearly 50% in 2026 due to a memory chip shortage driven by data center construction, with expectations that this shortage will persist for several years, providing long-term support for Micron's share price.
- Investor Strategy Insights: Tepper's moves highlight the importance of taking profits and remaining open to new stock ideas, particularly as Micron has rapidly gained attention in recent months, showcasing its potential as a market focus.
See More
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- Insufficient Market Attention: Despite Broadcom's impressive $1.5 trillion market cap as a semiconductor and software manufacturer, its lack of attention in the market suggests an underestimation of its potential, which could negatively impact its stock performance.
- Changing Customer Demand: While Broadcom supplies chips to major client Alphabet, the company urgently needs to acquire new clients to counteract the software market decline driven by AI fears; failure to adapt could expose it to greater market risks.
- Poor Investment Timing: Although Broadcom is recognized as a great company, Jim Cramer emphasizes that now is not the right time to invest, advising investors to wait for a price correction to enter at a more favorable moment.
- Future Growth Potential: Cramer believes Broadcom possesses winning characteristics in the current environment, and despite facing short-term challenges, its strong financial performance and potential stock buyback plans could lay the groundwork for a future stock price rebound.
See More
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- Alphabet's Accelerating Performance: In its fourth quarter, Alphabet reported an 18% year-over-year revenue increase to $113.8 billion, accelerating from 16% growth in the previous quarter, showcasing strong performance in Google Services and cloud computing, thereby reinforcing its market leadership.
- Cloud Business Surge: Google Cloud's revenue soared 48% year-over-year to $17.7 billion in the fourth quarter, driven by the ongoing adoption of AI infrastructure, indicating Alphabet's rapid expansion in high-margin sectors.
- Trade Desk's Slowing Growth: The Trade Desk reported fourth-quarter revenue of $847 million, up 14% year-over-year, but noted that growth would have been closer to 19% without the irregular nature of U.S. political ad spending, highlighting a deceleration in its growth momentum.
- Uncertain Outlook: The Trade Desk's first-quarter revenue guidance of at least $678 million implies only about 10% year-over-year growth, and the adjusted EBITDA guidance suggests a decline in key profitability metrics, reflecting the challenges it faces.
See More
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- Strong Earnings for Alphabet: Alphabet's fourth-quarter revenue increased by 18% year-over-year to $113.8 billion, exceeding market expectations and demonstrating robust performance in Google Services and cloud computing, further solidifying its market leadership.
- Cloud Business Thriving: Google Cloud saw a staggering 48% year-over-year revenue growth in Q4, reaching $17.7 billion, driven by widespread adoption of AI infrastructure, significantly boosting overall revenue and profit.
- Challenges for The Trade Desk: The Trade Desk reported Q4 revenue of $847 million, up 14% year-over-year, but actual growth was lower than expected due to irregular U.S. political ad spending, indicating a deceleration in momentum.
- Gloomy Future Outlook: The Trade Desk anticipates first-quarter revenue of at least $678 million, implying only 10% year-over-year growth, while adjusted EBITDA guidance suggests a decline in profitability, despite maintaining a debt-free balance sheet.
See More
Broadcom Stock Affected by Analyst Downgrade
- Minor Stock Decline: Broadcom's shares fell 0.2% on Monday, reflecting investor caution despite the company's leading position in the AI revolution, indicating a lack of confidence in its immediate market performance.
- Analyst Price Target Cut: RBC Capital's analyst Srini Pajjuri lowered Broadcom's price target from $370 to $340 while maintaining a 'hold' rating, signaling concerns about the company's short-term outlook despite its strong fundamentals.
- Optimistic Earnings Outlook: Despite the price target reduction, the analyst anticipates that Broadcom will report a 'beat and raise' quarter for Q1 FY2026, driven by increased demand for tensor processing units (TPUs) supplied to Google, which could bolster growth.
- Risks with Anthropic Relationship: The analyst expressed concerns regarding Broadcom's relationship with AI developer Anthropic, noting that while current supply agreements will generate revenue, demand may decline after the first half of 2027, posing risks to the company's future revenue stability.
See More
