Alphabet Secures $2.4B, 1.17GW Carbon-Free PPAs and Apple AI Partnership
Alphabet agreed long-term $2.4B power purchase agreements for 1.17GW of carbon-free energy under 20-year terms to supply its SPP, ERCOT and PJM data centers, with projects online by 2028. It also forged a multi-year collaboration with Apple to power next-gen Apple Foundation Models on Google’s Gemini and cloud platform.
1. Apple and Google Forge AI Infrastructure Partnership
On January 10, Alphabet’s Google and Apple announced a multi-year collaboration under which Apple’s next-generation Foundation Models will be built on Google’s Gemini models and run on Google Cloud infrastructure. According to the joint statement, Apple evaluated multiple providers and determined that Google’s AI technology delivered the most capable foundation for its Private Cloud Compute environment while preserving Apple’s privacy standards. The deal gives Google Cloud a strategic win by integrating Gemini into one of the world’s largest device ecosystems, reinforcing Gemini’s position as a core enterprise AI backbone. In the past year, analysts have revised Google’s fiscal 2026 consensus EPS estimate upward by 18% to $10.58, reflecting growing confidence in its AI monetization strategy. This agreement could accelerate enterprise adoption of Gemini and drive incremental revenue for Google Cloud as more developers and corporate customers seek Gemini-powered services on Google’s infrastructure.