Google (part of Alphabet Inc. holding) plans to invest $25bn in the development of data centres and infrastructure for artificial intelligence technologies in the US over the next two years.
According to the company’s press release, the funds will be invested in regions served by power grid operator PJM Interconnection. The company operates in 13 states and has struggled to cope with the growing strain on the power grid due to soaring electricity demand from data centres.
Google will also spend $3bn to upgrade two hydroelectric plants in Pennsylvania. This will help meet the growing power needs of data centres and AI systems.
The modernisation of the plants will be part of an agreement with Brookfield Asset Management to purchase 3 GW of electricity generated from the hydroelectric plants.
Alphabet shares are up 1 per cent on Tuesday. Since the beginning of the year, the company’s capitalisation has fallen 3.3% to $2.21 trillion.