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Alphabet's Google (GOOGL) Strikes Deal to Cut AI Data Center Power Use During Peak Demand

By Ghazal Ahmed | August 07, 2025, 2:50 AM

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks Gaining Attention on Wall StreetOn August 5, Reuters reported that Google has announced that it has signed agreements with two U.S. electric utilities to curb AI data center power consumption during times of surging demand on the grid.

Artificial Intelligence demands huge amounts of power, which is why utilities throughout the country have been flooded with requests to meet the energy demands of Big Tech’s AI data centers.

Alphabet’s Google (GOOGL) Strikes Deal to Cut AI Data Center Power Use During Peak Demand
A powerful aerial view of the company's data center, exemplifying the digital services and informatics being offered.

The increase in demand for power is not only leading to supply concenrs, but also raising worries about rising prices for everyday homes and business and potential blackouts.

As a result, Google is now in agreement with Indiana Michigan Power and Tennessee Power Authority. The agreements involves scaling back power use at the technology giant’s data centers when called upon by the electric utilities to free up space on the grid.

The agreement marks the first formal agreement of its kind by Google to temporarily cut down its machine learning workloads.

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks Gaining Attention on Wall Street and 10 Trending AI Stocks on Wall Street.

Disclosure: None.

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