This article first appeared on GuruFocus.
Google (GOOGL, Financials) has agreed to purchase solar electricity in Malaysia. This would help the company get more green energy for its businesses throughout the globe.Under the agreement, Google would buy electricity from a 30-megawatt solar project in Kedah. Shizen Energy’s local firm is in charge of the collaboration that is working on the project, which is expected to commence operations in 2027.The purchase helps Google reach its objective of making energy-intensive enterprises like data centers less carbon-intensive, particularly in Asia where fossil fuels are used to power the grid. Company leaders have said that this region is one of the toughest to cut down on pollution.The arrangement makes it easier for Malaysia to attract foreign investment by making renewable energy more available. According to BloombergNEF, the country intends 70% of its installed power capacity to come from renewable sources by 2050. This is up from 26% last year.
Alphabet stresses putting money into long-term sustainability goals, which investors see as more and more important for keeping operating costs and regulatory risk under control. In the company’s earnings report, management may talk about the rise of data centers and how they get their energy. This might make shares go up.
