alphabet inc.

overview

Alphabet Inc. is a multinational technology conglomerate holding company and the parent of Google LLC. Google Cloud Platform (GCP) is the world’s third-largest cloud infrastructure provider, operating global hyperscale data centers supporting search, advertising, cloud computing, AI/ML services, and enterprise applications. Google was founded in 1998 by Larry Page and Sergey Brin, reorganized under Alphabet in 2015, and has built one of the most extensive technical infrastructure networks globally with over 3.2 million kilometers of terrestrial and subsea fiber.

business model

Alphabet operates through multiple segments: Google Services (Search, YouTube, Android, Maps, advertising - 87% of revenue), Google Cloud (cloud infrastructure, workspace collaboration tools, data analytics - growing fastest), and Other Bets (Waymo, Verily, experimental ventures). Google Cloud monetizes through usage-based pricing for compute, storage, networking, and AI services, plus enterprise subscriptions for Google Workspace. The company’s business model relies on massive data center infrastructure to power advertising targeting, search indexing, AI model training, and cloud services for enterprises. Alphabet invested $52.5 billion in capex in 2024, with the majority directed toward data centers, servers, and networking equipment to support AI infrastructure buildout.

data center profile

global footprint

us portfolio (from database)

projects by state

specialization

primary focus: hyperscale, cloud, ai-ml

key differentiators:

• Custom-designed Tensor Processing Units (TPUs) for AI/ML workloads - 4.7x performance improvement with Trillium (6th gen)

• Leadership in AI infrastructure and services - Gemini, Vertex AI, PaLM models

• Strongest commitment to 24/7 carbon-free energy (64% CFE globally in 2024)

• Industry-leading data center efficiency - 1.09 PUE vs 1.56 industry average

• Proprietary networking technology and subsea cable infrastructure (3.2M km fiber)

financial highlights

strategy

corporate strategy

Alphabet’s corporate strategy centers on maintaining search and advertising dominance while aggressively expanding Google Cloud to compete with AWS and Azure in the AI era. The company is investing $75-85 billion in capex for 2025 (up from$52.5B in 2024) with the majority directed toward AI-enabled data center infrastructure, servers, and networking. Google differentiates through custom AI hardware (TPUs), advanced AI services (Gemini, Vertex AI), and the most aggressive sustainability commitments in the industry (24/7 CFE by 2030). The strategy emphasizes being first-to-market with cutting-edge AI infrastructure while leveraging existing ecosystem advantages from Google Workspace, Android, and Chrome to drive cloud adoption. Alphabet is pursuing a dual approach: building proprietary TPU infrastructure for competitive advantage while simultaneously partnering with Nvidia to offer H100/H200/Blackwell GPUs to customers.

growth strategy

Google’s data center growth strategy focuses on rapid capacity expansion to meet surging AI compute demand while maintaining leadership in sustainability. The company is building 11+ new data center regions globally, with major investments in the US ($7B Iowa,$2B Indiana, $4.2B Virginia), Southern India ($15B - largest non-US investment), and continued international expansion. Google is pursuing a geographic diversification strategy to reduce concentration risk from Northern Virginia and reduce latency for global customers. The company broke ground on data centers in South Carolina, Indiana, Missouri and internationally in 2024-2025. Growth is constrained by power availability more than capital, driving Google’s nuclear (Kairos Power 500MW) and geothermal (Fervo Energy 115MW) partnerships. Google is also densifying existing facilities with higher-power AI infrastructure while maintaining industry-leading PUE efficiency.

power strategy

Google pursues the industry’s most comprehensive clean energy strategy, combining renewable PPAs, advanced nuclear, enhanced geothermal, and innovative utility partnerships. The company aims for 24/7 carbon-free energy (CFE) matching on every grid by 2030, a more stringent goal than AWS or Microsoft’s annual matching commitments. Google achieved 64% CFE globally in 2024 with 10 grid regions exceeding 90% CFE. The strategy emphasizes firm, dispatchable carbon-free power (nuclear, geothermal) to complement variable renewables (wind, solar) and achieve true 24/7 matching rather than annual offsets.

renewable commitment: Google has contracted for more than 20GW of renewable energy globally and was the largest corporate purchaser of renewable energy in multiple years. In 2024, Google signed contracts for approximately 8GW of clean energy generation capacity - more than any prior year. The company maintains a global average PUE of 1.09 (vs 1.56 industry average), demonstrating 84% less overhead energy consumption. Google targets 100% renewable energy matching and net-zero emissions across all operations and value chain by 2030. The company is carbon-neutral since 2007 through offsets and pioneered corporate renewable PPAs starting in 2010.

nuclear partnerships:

• Kairos Power - Master Plant Development Agreement for 500MW fleet of small modular reactors (SMRs) by 2035, first deployment by 2030. First-of-its-kind corporate agreement for multiple deployments of single advanced reactor design in US.

• NextEra Energy - Pursuing potential restart of Duane Arnold Energy Center (615 MW) in Iowa to power adjacent Google data centers, with NRC licensing discussions ongoing for potential 2028 restart.

• World Nuclear Association - Joined alongside Microsoft and Nucor in 2025 to share SMR discoveries and business models

major commitments

partnerships

power providers

technology partners

Nvidia (AI Hardware / GPUs) : Strategic partnership expanded in 2024. Google Cloud among first providers to offer H200 Tensor Core GPUs and Blackwell GPUs (early 2025). A3 Ultra VMs powered by H200, A3 and A3 Mega VMs powered by H100. Partnership combines Google Cloud infrastructure with Nvidia AI platform.

Google (Internal) (Custom AI Chips - TPUs) : Proprietary Tensor Processing Units designed in-house. Trillium (6th generation) offers 4.7x compute performance vs TPU v5e, with 2x HBM capacity, 2x bandwidth, 2x Interchip Interconnect bandwidth. TPUs power Google’s own AI services and are available to GCP customers.

Fervo Energy (Enhanced Geothermal) : Exclusive partnership for enhanced geothermal energy using horizontal drilling and fiber-optic monitoring. Operational 3.5MW facility in Nevada expanding to 115MW. First-of-its-kind commercial enhanced geothermal deployment.

leadership

Sundar Pichai

Chief Executive Officer of Alphabet and Google

Joined Google in 2004, led product management and innovation for Google Chrome, Chrome OS, and Google Drive. Became CEO of Google in 2015 and CEO of Alphabet in 2019. Under his leadership, Google Cloud achieved $50B+ annual revenue run rate and the company committed to aggressive AI infrastructure investments ($75-85B in 2025).

Architect of Google’s AI-first strategy and massive data center infrastructure buildout. Driving force behind $75-85B annual capex commitment and nuclear/geothermal partnerships.

Thomas Kurian

CEO of Google Cloud

Former Oracle executive who transformed Google Cloud from unprofitable division to $48B+ annual revenue business with strong operating margins (17$1B+ annually and 65% of customers using AI products.

Responsible for Google Cloud’s profitability turnaround and aggressive AI infrastructure expansion. Direct oversight of data center buildout to support cloud growth and AI services.

Anat Ashkenazi

Chief Financial Officer

Former CFO of Eli Lilly (2021-2024) where market cap tripled during her tenure. Led successful commercialization of GLP-1 drugs (Mounjaro, Zepbound). At Alphabet, focusing on cost efficiency while supporting $85B AI infrastructure capex.

Leading capital allocation strategy for record-breaking AI infrastructure investments while driving operational efficiency. First earnings call emphasized balancing growth investments with cost discipline.

competitive position

Google Cloud is the #3 cloud infrastructure provider globally with 11-13% market share (Q4 2024), behind AWS (30-33%) and Microsoft Azure (20-21%). However, Google is the fastest-growing among the Big Three with 32% YoY growth and significantly outperforms its overall market share in AI/ML workloads. Google’s 18% share of new GenAI case studies is 9 percentage points higher than its 9% cloud market share, indicating strong competitive position in AI infrastructure. Google Cloud achieved $48B annual revenue in 2024 with strong profitability (17$1.9B operating income in Q3 2024 alone - up from $266M year prior). While third in overall market share, Google leads in AI innovation with proprietary TPUs, sustainability commitments (24/7 CFE by 2030), and data center efficiency (1.09 PUE vs 1.56 industry average).

strengths

• Custom AI infrastructure (TPUs) providing 4.7x performance advantage vs previous generation

• Industry-leading data center efficiency - 1.09 PUE vs 1.56 industry average

• Most aggressive sustainability commitment - 24/7 CFE on every grid by 2030 (64% achieved in 2024)

• Fastest cloud revenue growth among Big Three - 32% YoY

• Outperforming in AI workloads - 18% of GenAI case studies vs 9-13% overall cloud share

opportunities

• AI/ML workload growth playing to Google’s strengths - TPUs and AI services

• GenAI adoption accelerating - Google capturing disproportionate share

• Sustainability becoming enterprise purchasing criterion - Google’s 24/7 CFE leadership

• Nuclear and geothermal partnerships providing power availability advantage

• India market expansion - $15B investment in Southern India data centers

threats

• AWS maintaining dominant 30%+ market share with broadest service portfolio

• Microsoft Azure growing enterprise share through Office 365/Windows integration

• Power availability constraints limiting data center expansion across all hyperscalers

• Rising energy costs impacting data center economics industry-wide

• Regulatory pressure on tech giants - antitrust investigations in US and EU

projects

Showing top 20 of 43 projects

sources

• Alphabet Inc. Form 10-K for Fiscal Year Ended December 31, 2024

• U.S. Securities and Exchange Commission (2025-02-05)

• Alphabet Q3 2024 Earnings Call

• Alphabet Inc. (2024-10-29)

• Google Cloud Q3 2024 revenue hits $11.4bn, data center spend set to increase in 2025

• Data Center Dynamics (2024-10-29)

• Google and Kairos Power Partner to Deploy 500 MW of Clean Electricity Generation

• Kairos Power (2024-10-14)

• Google signs advanced nuclear clean energy agreement with Kairos Power

• Google Official Blog (2024-10-14)

• Operating sustainably - Google Data Centers

• Google

• Google’s 2024 Environmental Report

• Google Official Blog (2024)

• Locations of Google Data Centers

• Google

• Google Cloud’s Data Center Locations: Regions and Availability Zones

• Dgtl Infra (2025)

• Google Cloud Market Share in 2025

• Kinsta (2025)