Google’s Geothermal Partnership with NV Energy
Alphabet‘s GOOGL is making strides toward reaching its zero-carbon objectives. The tech giant’s division Google has teamed up with NV Energy, a utility company under the Berkshire Hathaway umbrella, to fuel its Nevada-based data centers with geothermal energy.
According to reports, Google aims to significantly ramp up the share of carbon-free geothermal energy from 3.5 megawatts to 115 megawatts injected into the local power grid for its operations over the next six years.
In order to implement this deal, NV Energy has entered into a purchase agreement with advanced geothermal developer Fervo Energy. However, the Google-NV Energy partnership is still pending approval from state utility regulators.
Advancing on the Zero-Carbon Front
Since achieving carbon neutrality in 2007, Google has been on a relentless journey towards attaining net-zero emissions across its operations and value chain by 2030. The company has set ambitious targets to slash 50% of its combined Scope 1, 2, and 3 absolute emissions before the deadline. To neutralize its remaining emissions, GOOGL plans to invest in both nature-based and technology-based carbon removal solutions.
Google has made substantial investments in wind and solar energies, enabling its global operations to be powered by 64% carbon-free energy. Transitioning to geothermal energy is particularly significant as it leverages naturally occurring underground heat to generate renewable electricity, distinct from solar and wind energies that rely on weather conditions. This shift away from fossil fuels is expected to translate into cost savings in the short and long run, a definite boon for the tech giant.
Embracing a Zero-Carbon Future
The tech industry is witnessing a strong momentum towards carbon neutrality. Besides Alphabet, industry players like Amazon AMZN, Microsoft MSFT, and Lam Research LRCX are actively engaged in initiatives to reduce their carbon footprints significantly and slash energy expenses.
Amazon, known for its sizable investments in renewable energy projects, is swiftly progressing towards powering its infrastructure entirely with renewable sources. Originally targeting 100% renewable energy by 2030, the company now expects to achieve this milestone by 2025. As of 2021, Amazon had already reached 85% renewable energy consumption across its business.
Microsoft is on a path to becoming carbon-negative by 2030 and aims to eliminate all its greenhouse gas emissions by 2050. Lam Research has committed to achieving carbon net-zero emissions by 2050 and running its operations entirely on renewable energy by 2030.
Steering Towards Sustainable Investments
In the current landscape, considerations around environmental, social, and governance factors play a pivotal role in shaping sustainable businesses. Investors globally are not only focused on a company’s profit potential but also evaluate its sustainability for the future.
Given this context, Alphabet, with a Zacks Rank of #1 (Strong Buy), stands well-positioned to attract investor confidence due to its relentless efforts in reducing its carbon footprint. Year-to-date, Alphabet has recorded a gain of 25.6%, outperforming the Zacks Computer & Technology sector’s return of 10.2%.
