Google is set to invest $40 billion in three new data centers in Texas, expanding its AI and cloud computing infrastructure as competition heats up with firms like OpenAI and Anthropic. The investment, scheduled through 2027, includes one data center in Armstrong County in the Texas Panhandle and two in Haskell County near Abilene. One Haskell facility will co-locate with a solar and battery energy storage plant to reduce the impact on the state’s power grid.
“This investment will create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas,” said Alphabet CEO Sundar Pichai at an event near Dallas, where Google already operates two data centers.
Texas has become a prime location for data centers due to its relatively low energy costs, vast land availability, and a business-friendly environment. Google emphasized its commitment to supporting the grid, funding energy efficiency initiatives, and expanding electrical training programs through Google.org’s AI Opportunity Fund. Governor Greg Abbott highlighted Texas’ strategic role, saying, “Texas will be the centerpiece for AI data centers for Google. They can come here and operate here knowing that Texas moves at the speed of business.”
Google’s announcement comes amid a wave of massive data center investments in Texas. Anthropic plans $50 billion in U.S. data centers, including Texas and New York. OpenAI, along with Oracle and SoftBank, is building its first Stargate data center in Abilene, Texas. Meta Platforms is constructing a gigawatt-scale Texas data center, while Microsoft signed a $10 billion deal for computing capacity in Texas over five years. Fermi Inc., co-founded by former Texas Governor Rick Perry, plans a private data-center campus powered by four nuclear reactors.
Google’s $40 billion Texas investment is part of a broader capital expenditure spree. The company plans over $90 billion in spending this year, largely directed at servers, custom AI chips, and data centers to support AI and cloud operations. Recent global investments include a $15 billion AI infrastructure hub in southern India, $6.4 billion in computing resources in Germany, and $6.5 billion in the U.K. to advance AI development. These investments underscore Google’s push to scale its AI capabilities worldwide and diversify beyond its traditional search advertising business, seeking strong returns on its massive infrastructure spending.
