Alphabet (GOOGL) Strengthens Data Center and Renewable Power Push Amid Analyst Price Target Upgrade

Alphabet Inc. (NASDAQ:GOOGL) is one of the must-buy AI stocks to invest in. On December 22, 2025, Alphabet Inc. (NASDAQ:GOOGL) announced a definitive agreement to acquire Intersect Power, a clean energy developer specializing in data center and energy infrastructure solutions. The deal is valued at $4.75 billion in cash; Alphabet will also assume Intersect’s existing debt.

This acquisition builds on an existing partnership. In December 2024, Google, along with TPG Rise Climate, led an over $800 million funding round in Intersect. As a result, Google, whose parent company is Alphabet, secured a minority stake in Intersect. The two companies are also collaborating on developing gigawatts of co-located data center capacity with plans for up to $20 billion in renewable power investments by the end of the decade.

The transaction includes Intersect’s development team, platform, and multiple gigawatts of energy and data center projects. These projects are currently in development or under construction, and many are already tied to Google’s needs. One notable ongoing joint project involves a co-located data center and power site under construction in Haskell County, Texas. But excluded from the deal are Intersect’s existing operating assets in Texas and all operating and in-development assets in California.

In a different update, Wedbush increased its price target on Alphabet shares to $350 from $320, while maintaining an Outperform rating. This adjustment came as part of a broader look at the consumer internet sector following a strong performance in 2025. According to Wedbush, consumer internet companies posted solid gains throughout 2025. The 24 companies Wedbush covers averaged 23% returns, outperforming the NASDAQ’s 19% gain.

Alphabet Inc. (NASDAQ:GOOGL) is the parent company of Google. The company integrates AI across its core businesses including Google Search, YouTube, and Google Cloud. Its DeepMind subsidiary has pioneered breakthroughs in generative AI and reinforcement learning, while its Gemini AI models power advanced applications in productivity, search, and enterprise solutions.

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.

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Disclosure: None. This article is originally published at Insider Monkey.