Alphabet (GOOGL) Strengthens Data Center and Renewable Power Push Amid Analyst Price Target Upgrade

Core Viewpoint - Alphabet Inc. is making a significant move in the clean energy sector by acquiring Intersect Power for $4.75 billion, which will enhance its data center and renewable power capabilities [1][2]. Group 1: Acquisition Details - The acquisition of Intersect Power includes its development team, platform, and multiple gigawatts of energy and data center projects that are either in development or under construction [3]. - The deal will also see Alphabet assume Intersect's existing debt, further solidifying its investment in renewable energy infrastructure [1]. Group 2: Strategic Partnerships - This acquisition builds on a previous partnership where Google, alongside TPG Rise Climate, led an over $800 million funding round in Intersect in December 2024, securing a minority stake [2]. - The collaboration aims to develop gigawatts of co-located data center capacity, with plans for up to $20 billion in renewable power investments by the end of the decade [2]. Group 3: Market Performance and Analyst Ratings - Wedbush has raised its price target on Alphabet shares from $320 to $350, maintaining an Outperform rating, reflecting a strong performance in the consumer internet sector throughout 2025 [4]. - Consumer internet companies, including Alphabet, have shown solid gains, with an average return of 23% among 24 companies covered by Wedbush, outperforming the NASDAQ's 19% gain [4]. Group 4: AI Integration - Alphabet integrates AI across its core businesses, including Google Search, YouTube, and Google Cloud, with advancements from its DeepMind subsidiary in generative AI and reinforcement learning [5]. - The Gemini AI models developed by Alphabet are powering advanced applications in productivity, search, and enterprise solutions [5].