Alphabet's Google Cloud Is Surging at 82%, and the Heavy Spending Is Starting to Make Sense

Alphabet (GOOG) is partnering with Flo Health to integrate wearable data and AI for women's health insights. Starting in 2027, users can sync Fitbit data with Flo's app, with privacy controls in place. The companies aim to develop co-branded products and research AI's role in understanding hormonal changes. Investors should monitor adoption, data-sharing rates, and potential revenue streams.

IREN Ltd. (IREN) stock surged after Anthropic reportedly signed a multi-year cloud contract, adding to its growing customer base. Anthropic aims to expand AI computing capacity significantly, with IREN benefiting from faster data-center deployment. Analysts upgraded IREN, citing rising AI demand and higher contract pricing, with price targets up to $80. IREN shares rose 4.46% premarket.

Fervo Energy, a Houston-based geothermal company, has secured a deal with Google to provide 400 megawatts of power by 2028 for a Utah data center, with an option for 600 more megawatts by 2030. Fervo plans to invest $2.2 billion in its Cape Station facility in Utah. The deal aims to address energy demands and environmental concerns of data centers, though the technology's long-term reliability is still under scrutiny.

Waymo, Alphabet's (GOOG) robotaxi unit, secured a $5B term loan from lenders including PIMCO, Blackstone (BX), and Goldman Sachs (GS). This is Waymo's first debt financing, with a spread of 5.25% over benchmark rates. The loan is seen as a step in Waymo's commercial scaling, though its operating profitability remains unproven. Alphabet shares closed at $351.66, up 0.97%.

U.S. utility companies secured deals to meet AI data center power demand. Constellation Energy (CEG) agreed to supply Google (GOOG, GOOGL) with 3,590 MW of nuclear power, investing $4.3B in upgrades. Vistra (VST) received a $4.2B federal loan for nuclear expansions. NextEra Energy's (NEE) $67B merger with Dominion Energy (D) faces Virginia scrutiny. Duke Energy (DUK) partnered with tech firms to manage data center electricity costs.

GOOG launched a private-preview Gemini agent on Google Cloud. Wells Fargo raised its target to $417 and forecasts Google TPU external sales of $9.2B in Q3 and $11.5B in Q4. GOOG signed power deals with Constellation for 3,590 MW to support AI and cloud. GOOG will host Unity’s next-gen AI tools on Google Cloud. Prisjakt’s unit sued GOOG for ~SEK 21.4 billion in damages. GOOG is shifting to a heavier asset and capex footing due to AI spending. ARK sold 25,342 GOOG shares (~$8.74M).