Google (GOOG) has been criticized for making a lot of deals and acquisitions without any apparent benefit. Cars without drivers just adds a wacky factor to all of it. But you have to become concerned about investors who do not understand Google’s energy read wind power play.
Google uses huge amounts of electricity. They are similar to airlines who live and die on aviation fuel pricing. By investing in wind power they are trying to control and hedge their costs. Airlines merely crash and burn when oil gets too high.
This begs the question. when will Google provide detailed break outs for their energy costs on all those server farms? Will they ever be able to make peace with the Chinese and have access to economically priced local electricity?
Will Google become an unhedged energy play?
Disclosure: George Gutowski writes from a caveat emptor perspective. He has no position in stocks mentioned in this post.
- Google and the Mid-Atlantic Bight (jcwinnie.biz)
- Google To Fund Huge Wind Farm Project, Make No Money (247wallst.com)
- Google to fund wind power project (marketplace.publicradio.org)
- Google and friends scheme offshore windmill army (go.theregister.com)
- Google Backs Offshore Wind Farm Backbone (gigaom.com)
- Google, Marubeni JV to Fund Offshore Wind Power Cable Network (environmentalleader.com)
- Google Invests in Offshore Wind Energy Network (dailyfinance.com)
- Google invests in East Coast wind-power plan (sfgate.com)