Google to Build New Data Center in Alabama for $600 Million - Analyst Blog
Google Inc. GOOGL recently announced its plans to build a renewable-energy powered data center inside a former coal-fired power plant to meet the fast-growing demand for Internet usage and data storage capacity.
The search engine giant plans to invest $600 million for the construction of this new data centre in Alabama. This is Google’s 14th data center worldwide and is expected to create about 100 jobs.
The data centers comprise computer servers that process everything from Internet searches to emails, inquiries to maps, videos and other services. The need for data center expansion is rising due to the growing demand for cloud computing and the ever-increasing needs of the Internet users.
Google is firing on all cylinders to advance green power all over the world. This new data center will rely solely on renewable energy like wind or solar power, helping to minimize the pollution created by the coal-fired plants. Google’s other two U.S. data centers which run entirely on wind power are located in Iowa and Oklahoma. Moreover, the company has agreed with the Tennessee Valley Authority (“TVA”), the region’s electric power operator, to look for new renewable power projects in the region.
Like Google, several other tech companies including Apple AAPL and Facebook FB are also moving away from fossil fuels and focusing more on clean energy. These companies aim to reduce their carbon footprint and use more renewable energy to power their operations. Moreover, these initiatives will help them to generate healthy returns from these solar and wind investments because of the associated tax incentives.
Also, several countries are increasingly relying on solar power to generate clean energy. Stringent environmental legislations on greenhouse gas emissions have also proved to be a boon for the solar power sector. Moreover, despite high initial investments, low operational costs and no fuel costs make these solar investments attractive.
Google currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the sector is Blue Calypso, Inc. BCYP with a Zacks Rank #2 (Buy).
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