Alphabet’s Biggest Solar Deal Isn’t Really About Going Green. Here’s Why Investors Should Buy the GOOGL Stock Dip.

Alphabet’s (GOOG) (GOOGL) Google is going big on solar. The company recently signed an agreement with Cypress Creek Energy to build its largest solar project in the U.S. The project, named Steel River Energy Center, will be located in Mississippi County, Arkansas. Google will take all the initial output once the project comes online in 2029. It will be built in two phases. Phase one will have 1.6 GW of solar and 1.9 GWh of battery storage. Phase two will see the company expand to 2.5 GW of solar and 2.9 GWh of storage once complete. That is enough to power more than 315,000 Arkansas homes. Under the deal, Google will pay a fixed price for the clean power to offset its grid emissions, though the financial terms were not shared. First Solar will supply the panels using all domestic materials, the batteries will come from LG’s plant in Phoenix, and the steel will come from Arkansas itself.

The real story here is power, not clean energy. Alphabet plans to spend as much as $190 billion on capital expenditure in 2026. Most of that will go towards AI data centers, which require a significant amount of electricity. This is an industry-wide problem. The growth of major cloud companies is not restricted by customer demand but by how much power they can secure. Getting ahead of that shortage matters. That makes securing 2.5 GW of future electricity a way for Google to keep its AI plans on track.