June $1.2 Billion Loan Shows Alphabet Financing Tied to Electricity Purchases
Key Facts
Alphabet closed a $1.2 billion unsecured term loan from Aron Energy Prepay 66, a wholly owned subsidiary of Goldman Sachs Group, on June 18, 2026, according to law firm Cleary Gottlieb. The deal required Alphabet to make monthly payments at a fixed rate. The transaction falls under financing tied to a prepaid energy deal, the firm said. The bond offering linked to the deal was launched on June 2 and priced on June 4 before closing on June 18. The transaction is a documented precedent for Alphabet financing tied to electricity, while the confirmed facts available here do not provide details establishing a new deal on November 3.
The financing comes as Google expands its clean-energy purchase agreements. The company said it signed more than 240 agreements to purchase nearly 35 gigawatts of new clean energy between 2010 and 2025. The agreements included more than 12 gigawatts contracted by the company in 2025 alone, according to Google data center data. These figures show the expansion of the company's energy-contract portfolio over several years, alongside an increase in the capacity added through agreements over the past year. The contracts provide a framework for securing the electricity Google needs for its operations, including data centers.
The need is linked to forecasts for growth in data center electricity consumption in the United States. In its reference case, the U.S. Department of Energy estimated that those centers would consume 649 terawatt-hours in 2030, equivalent to 11.8% of total projected U.S. electricity consumption that year. In June 2026, the Federal Energy Regulatory Commission ordered six regional grid operators to justify or reform rules for connecting data centers, manufacturing facilities and other large power users to the grid. The regulatory action puts the grid connection of large loads among the issues requiring attention at the operator level. In this context, electricity contracts and financing for their purchase are part of companies' response to the expansion of digital infrastructure needs.
Electricity arrangements for data centers also include contracts with local utilities. The Michigan Public Service Commission conditionally approved contracts between DTE and Google, according to the commission. The terms provide for a duration of 20 years and a minimum billing floor equal to 80% of contracted electricity demand in each billing cycle. The state's attorney general also said on October 30 that he had requested reconsideration of the approval, objecting to the risk of costs being shifted to other DTE customers. The objection adds a regulatory dimension to debate over how the costs of electricity expansions tied to data centers should be allocated.
Google and Constellation announced a nuclear agreement on October 6 that Google said would strengthen the PJM grid, which serves 67 million people. The company said the agreement was part of its commitment to invest in clean, reliable energy to support its growth. The move links the company's electricity needs with investment in nuclear power supplies for the grid. In trading on November 3, Alphabet shares closed at $280.03, while Goldman Sachs shares closed at $896.09, according to EL7 data. The available data do not link the shares' movements to the June deal or to any new announcement on energy financing.