Alternative energy has become a focal point for many companies around the world, especially for those that consume a lot of electricity. Going green not only preserves the planet’s resources, but presents companies in a positive light and makes them more attractive to shareholders and customers.
Internet search giant Google recently expanded its interest in alternative energy by investing $200 million into the Spinning Spur wind farm in West Texas. Located in Oldham County, the farm features 70 wind turbines that have the ability to power around 60,000 homes with nearly 162 megawatts of electricity. While the investment puts Google in a good light, it is worth noting that the company’s server farm, when running at full tilt, consumes nearly 500 megawatts of power.
Despite the stunning energy consumption, the Spinning Spur farm is just an investment for Google, as the power output by the turbines will be directed to West Texas homes and not the company’s servers. This should not give the impression that the company does not use green energy, as around 30 percent of the power the company uses, including that going into hardware utilizing a 48 VDC power supply, originates from alternative sources.
Regarding the wind farm investment, senior corporate finance manager Ako Asare stated that Spinning Spur, and projects similar to it, not only bolster local economies with the energy they produce, they also deliver good returns in relation to the risk. This allows Google to safely broaden its scope of investment assets.
SolarCity
SolarCity is Google’s largest investment into alternative energy at nearly $300 million. The benefits from the project are more involved than just making a profit for Google.
The ultimate goal of SolarCity is to make renewable energy available to everyone. The project will accomplish this by working with consumers to custom design solar panel systems that suit the needs of a particular home. Google will then step in and buy the solar panels in order to draw profit from lease payments. The idea behind this is to remove the uncertainty that comes with buying alternative energy for personal consumption.
All in all, Google has made investments in 11 different programs for alternative energy, at a cost of over one billion dollars. The programs utilize solar energy as well as wind energy to produce two gigawatts of electricity.
The company’s investments into alternative energy projects and sources are an exercise in symbiosis. This allows the projects to tap the large amounts of funds required while providing Google with a healthy return on its investment.
As the planet’s resources become ever more challenged, investment in alternative energy sources and projects will become the standard for companies that care about the future.
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