Alphabet stock declined 1.5% following several recent announcements. Google announced plans to build its first data center in Minnesota at Pine Island with 1,900 megawatts of new renewable energy through an agreement with Xcel Energy. The company also announced a partnership with AES Corp for a data center in Wilbarger County, Texas, with 20-year power purchase agreements for co-located generation. According to Bridgewater Associates, U.S. technology giants including Alphabet are expected to collectively invest about 650 billion dollars in AI-related infrastructure in 2026. Alphabet delivered a double beat in fourth quarter results but updated 2026 capital expenditure guidance higher, which caused market concerns. Ark Invest purchased additional Alphabet shares, while analyst Charles Moon expressed a bearish outlook expecting a 4 percent decline.
Read full analysisAlphabet stock declined 1.5% following several recent announcements. Google announced plans to build its first data center in Minnesota at Pine Island with 1,900 megawatts of new renewable energy through an agreement with Xcel Energy. The company also announced a partnership with AES Corp for a data center in Wilbarger County, Texas, with 20-year power purchase agreements for co-located generation. According to Bridgewater Associates, U.S. technology giants including Alphabet are expected to collectively invest about 650 billion dollars in AI-related infrastructure in 2026. Alphabet delivered a double beat in fourth quarter results but updated 2026 capital expenditure guidance higher, which caused market concerns. Ark Invest purchased additional Alphabet shares, while analyst Charles Moon expressed a bearish outlook expecting a 4 percent decline.
Alphabet is the parent company of Google, the dominant internet search engine, as well as YouTube (which surpassed $60 billion in annual revenue), Google Cloud (growing 48% to a $70 billion annual run rate), and the Waymo autonomous driving unit. The company is executing a massive AI infrastructure buildout with $175-185 billion in 2026 capex guidance — spending that initially triggered a 12% selloff but is increasingly being reframed by analysts as a competitive moat. Today's decline came despite constructive news flow, including new data center partnerships in Minnesota and Texas that advance that infrastructure expansion.