Trump's Data Center Electricity Policy Eases Burden, Microsoft Commits to No Price Hikes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Policy Relief: Trump stated on Truth Social that the administration is collaborating with major tech companies to ensure data centers do not raise electricity costs for American consumers, alleviating a significant burden for the administration, yet this may create larger bottlenecks for tech firms expanding their data center footprints.
- Microsoft's Commitment: Microsoft announced its Community-First AI Infrastructure initiative, pledging to cover costs to ensure their data centers do not increase consumer electricity prices while minimizing water usage and replenishing more than they consume, demonstrating a strong commitment to environmental responsibility.
- Industry Response: Wedbush analysts expect other major tech organizations to follow Microsoft's lead soon due to increasing scrutiny from federal, state, and local governments regarding large-scale data center buildouts, although this may slow down construction and impact AI development.
- Clean Energy Competition: Analysts noted that as China invests more in new and existing power technologies, the U.S. faces greater pressure to fuel its AI ambitions, making clean energy a crucial factor in the AI race over the next decade, prompting tech companies to seek partnerships with clean energy providers.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 312.00 USD with a low forecast of 236.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
31 Buy
7 Hold
0 Sell
Strong Buy
Current: 331.860
Low
236.00
Averages
312.00
High
350.00
Current: 331.860
Low
236.00
Averages
312.00
High
350.00
About GOOGL
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.
