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WALTHAM CROSS, England - Google, now a $3.04 trillion market cap tech giant with a robust balance sheet showing more cash than debt, opened a new data centre in Waltham Cross, Hertfordshire on Tuesday as part of a two-year £5 billion investment in the United Kingdom, aimed at supporting the country’s growing artificial intelligence sector.
Chancellor Rachel Reeves officially opened the facility, which will help meet increasing demand for Google’s AI-powered services including Google Cloud, Workspace, Search and Maps. The construction involved more than 250 companies, with the majority being local businesses.
The investment includes capital expenditure, research and development, and related engineering over the next two years, encompassing Google DeepMind’s AI research in science and healthcare. According to Google, the investment is projected to create 8,250 jobs annually at UK businesses.
"Google’s £5bn investment is a powerful vote of confidence in the UK economy and the strength of our partnership with the US, creating jobs and economic growth for years to come," said Chancellor Reeves at the opening ceremony.
The company also announced a new agreement with Shell Energy Europe Limited, which will serve as Google’s 24/7 Carbon-Free Energy Manager in the UK. Shell will manage a power portfolio that addresses clean energy intermittency through battery energy storage systems, optimizing Google’s existing clean energy resources.
The Waltham Cross facility features advanced air-cooling technology to limit water usage and is equipped to support off-site heat recovery, potentially providing free heating to local homes, schools, or businesses.
As part of its community engagement, Google is establishing a Community Fund managed by Broxbourne Council to support local economic development, and providing direct support to local charities focused on skills and employment services.
The information in this article is based on a press release statement from Google. According to InvestingPro, Google maintains a "GREAT" overall financial health score, with 15+ additional ProTips available to subscribers. For comprehensive analysis and detailed metrics, access the full Pro Research Report, part of InvestingPro’s coverage of 1,400+ top US stocks.
In other recent news, Alphabet, the parent company of Google, reached a significant milestone by achieving a market capitalization of $3 trillion for the first time. This development places Alphabet among a select group of tech companies that have reached such a valuation. In Europe, Google announced the removal of data transfer fees for organizations using multiple cloud platforms, aligning with the upcoming EU Data Act aimed at enhancing competition in the cloud market. Meanwhile, Google is expected to face an antitrust fine from the European Union related to its adtech practices, as reported by sources with direct knowledge of the situation.
Additionally, Google is involved in a legal battle with PubMatic, which has filed a lawsuit seeking antitrust damages following a court ruling against Google’s practices in the digital advertising market. In a separate development, Google CEO Sundar Pichai announced a $150 million investment in AI education during a White House event, detailing grants to various organizations. These recent developments highlight Alphabet’s significant financial milestones and ongoing regulatory challenges.
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