Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google on Tuesday announced it is expanding its clean energy and infrastructure footprint through a new partnership with DTE Energy Company (NYSE:DTE) in Michigan.

Data Center and Clean Energy Expansion

Google is partnering with DTE Energy to launch a new data center in Michigan and add 2.7 gigawatts of clean energy to the local grid. The initiative also includes a $10 million Energy Impact Fund to support local energy affordability, reinforcing the company’s focus on sustainable growth.

The project will rely on new sources such as solar power and advanced storage technologies, strengthening Michigan’s energy infrastructure while aligning with the White House’s Ratepayer Protection Pledge.

Commitment to Ratepayer Protection and Sustainability

Under the agreement, Google will fully fund its electricity and infrastructure costs, ensuring local ratepayers are not burdened. This approach aligns with federal guidelines requiring tech companies to manage their own energy consumption as AI-driven demand rises.

The initiative also supports Michigan’s transition away from coal, while improving grid reliability and promoting local economic development, including workforce training and household energy efficiency.

Rising Capex and AI Infrastructure Demand

The move comes as the tech sector faces rising capital expenditure needs tied to AI infrastructure. Gene Munster of Deepwater Asset Management expects Big Tech capex to rise 65% in 2026, highlighting a shift toward energy and power investments.

With data center demand accelerating, Google’s partnership with DTE Energy reflects a proactive strategy to secure sustainable power while supporting long-term growth.

GOOG Price Action: Alphabet shares were up 0.84% at $306.98 at the time of publication on Tuesday, according to Benzinga Pro data.

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