Court fight ensues over new documents about Google and Arkansas data center

Entergy claims Google's Arkansas solar payments could total $2.1B over 20 years, correcting earlier figures. Alphabet (GOOGL) and Entergy (ETR) highlight power infrastructure's role in AI compute. Alphabet's long-term energy commitments secure capacity, while Entergy gains a large customer. Both companies face risks, including regulatory scrutiny and counterparty exposure. Hedge fund holdings and short interest data are provided.

Alphabet Inc. (GOOGL) agreed to pay $716 million for solar and grid upgrades in Arkansas, benefiting Entergy Corporation (ETR). The deal highlights electricity costs as a potential constraint on AI growth. Entergy stands to gain from expanded rate base, while Alphabet faces long-term power obligations. Hedge funds increased stakes in both companies, with short interest in Entergy at 4.36% of float.

Entergy (ETR) reported Q2 2026 earnings of $1.03 per share, exceeding expectations but slightly below last year. The company reaffirmed its 2026 guidance and long-term growth targets. Shares have returned 12.67% year-to-date and 23.04% over the past year, with long-term returns of 147.13% and 123.81% over three and five years, respectively. Analysts debate its valuation, with some seeing it as undervalued at $105.75 and others noting its high P/E ratio of 27.5x.

Entergy (ETR) reported Q2 2026 earnings of $1.03 per share, beating estimates but slightly down year-over-year. The company reaffirmed its 2026 adjusted earnings guidance. Shares have risen 12.67% year-to-date to $105.75, with a 23.04% total shareholder return over the past year. Analysts debate its valuation, with one narrative suggesting a 13.2% undervaluation at a fair value of $121.88, while another notes its P/E ratio is above industry peers.

Entergy (ETR) shares fell 1.4% since its last earnings report, despite Q2 2026 earnings of $1.03 per share beating estimates. Revenue rose 5.9% YoY to $3.52B, but missed consensus. The company faces higher costs and financing pressures but reaffirmed its 2026 adjusted earnings guidance of $4.25-$4.45 per share. Analysts have a mixed outlook, with estimates trending downward.

Entergy Louisiana plans to spend about $30 billion to expand and improve its Louisiana power grid, with filings to the state Public Service Commission. Entergy projects an average residential bill could rise about $40 per month if approved, though CEO Phillip May says industrial users could offset 50% or more. Regulators and groups question timing and affordability, including concerns over a $1.8 billion Cottonwood acquisition and Meta data-center-related deals.