Alphabet Inc.’s Google GOOGL is set build a large new data center in Reno, Nevada near Tesla, Inc.’s TSLA massive “Gigafactory.”
According to a Wall Street Journal report on Monday, Google recently bought 1,210 acres of land at a private industrial park east of Reno. The company purchased the land, located at the 107,000-acre Tahoe Reno Industrial Center, for $29.1 million in the hopes it will eventually build a data center.
Google’s new space in Reno puts the company only several miles south of Tesla’s $5 billion battery factory, known as the Gigafactory. The electric car maker’s new 10 million square foot plant has the potential to become the world’s largest building when it is completed in the next couple of years.
Reno has become a popular destination recently for relatively-nearby Silicon Valley technology giants. Low costs and minimal red tape have helped Reno lure some corporations into the area. Wal-Mart Stores Inc. WMT and eBay Inc. EBAY also already have buildings in the area.
It is still unclear what Google will do with all of its new land in Reno, but there is some speculation that it could be used to further test its self-driving car technology.
Tesla’s stock was down marginally on Monday to $301.44 per share and is currently a Zacks Rank #3 (Hold). Alphabet's stock was up 1.78% to $885.13 per share and is a Zacks Rank #3 (Hold).
Tesla is set to report its first quarter 2017 earnings on May 3. Alphabet is scheduled to report its first quarter earnings on April 27.
If you want to know more about Tesla’s Gigafactory check out our handy guide: So, What Actually Is Tesla's Gigafactory?
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
eBay Inc. (EBAY): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Tesla Inc. (TSLA): Free Stock Analysis Report
Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research