Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) subsidiary Google has purchased a stake in a Taiwanese solar power company. The deal, which involves New Green Power, a firm owned by BlackRock (NYSE:BLK), could see Google procure up to 300 megawatts of renewable energy.

What Happened: Google has made a strategic move to invest in New Green Power, a solar power company based in Taiwan. The tech giant has also secured the right to purchase up to 300 megawatts of renewable energy from this BlackRock-owned firm.

This initiative is part of Google’s broader strategy to reduce its carbon emissions and those of its suppliers, Google announced on Monday.

As a significant hub for Google’s cloud technology, Taiwan currently relies on fossil fuels for nearly 85% of its power. This investment aims to support the development of a large-scale solar pipeline in Taiwan, according to Amanda Peterson Corio, Google’s Global Head of Data Center Energy.

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Corio also mentioned that this investment is expected to drive the equity and debt financing for the build-out of New Green Power’s 1 gigawatt pipeline.

Taiwan is targeting 20 GW of solar capacity by 2025 and up to 80 GW by 2050, BlackRock said, as per a Reuters report on Monday.

Why It Matters: This move aligns with Google’s ongoing commitment to sustainability. In 2023, Google ventured into renewable energy mapping, aiming for a revenue of up to $100 million in its first year. The company looked to license new sets of mapping data to help build products around renewable energy.

Google’s investment in New Green Power comes at a time when the renewable energy sector is experiencing significant growth. Solar energy, in particular, has been outpacing wind energy.

Google’s investment in renewable energy also complements its broader efforts to expand its technical infrastructure. In June, Google announced a $2.3 billion investment in Ohio’s data centers to support the state’s growing technology hub.

Price Action: Alphabet Inc. Class C shares closed at $183.42, down 1.84% on Friday. In after-hours trading, the stock rose to $183.95, a 0.29% increase. Year to date, the stock has gained 31.43%.

Similarly, Alphabet Inc. Class A shares closed at $182.15, down 1.76% on the same day. In after-hours trading, the stock increased to $182.56, a 0.23% rise. Year to date, the stock has risen 31.83%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote