Google bets big on Texas with $40B data center plan

**Google to Invest $40 Billion in New Texas Data Centers Amid Growing AI Infrastructure Boom**

Alphabet Inc.’s Google announced plans to invest $40 billion in three new data centers in Texas, significantly expanding its footprint in the state. This investment, expected to continue through 2027, comes as competitors like OpenAI and Anthropic PBC also make substantial commitments to Texas.

According to a statement released by Google on Friday, November 14, one data center will be located in Armstrong County within the Texas Panhandle, while two others will be established in Haskell County, near Abilene.

“This investment will create thousands of jobs, offer skills training for college students and electrical apprentices, and speed up energy affordability projects across Texas,” said Sundar Pichai, CEO of Alphabet, during an event near Dallas, where Google already operates two other data centers.

### Texas: A Growing Hub for Data Centers and AI Investment

Texas has become an attractive destination for data center investments due to its lower energy costs, abundant available land, and supportive state government infrastructure tailored to the growing artificial intelligence sector.

Google emphasized its commitment to enhancing local energy resources, covering operational costs, and supporting community energy efficiency programs as part of its expansion plans. The company also announced an electrical training program aimed at increasing the number of apprentices in Texas, supported by Google.org’s AI Opportunity Fund.

Texas Governor Greg Abbott, present at the event with Pichai, endorsed these developments, predicting that Texas will become the primary hub for Google’s AI data centers. “Companies can come to Texas and carry out their operations knowing that the state acts quickly in business,” Abbott said.

Following the announcement, Alphabet’s stock saw a 1.7% rise in after-hours trading, up from a closing price of $276.41 in New York.

### Texas Attracting Major Tech Investments

Texas continues to solidify its reputation as a prime location for tech-related investments.

Earlier this week, Anthropic announced plans to invest $50 billion in data centers across the U.S., including sites in New York and Texas—states known for ample land and lower energy costs. These data centers are part of Anthropic’s strategy to stay competitive in the AI infrastructure market and are being developed in collaboration with Fluidstack.

OpenAI, Oracle Corporation, and SoftBank Group Corporation are jointly supporting the Stargate project, which recently broke ground on its first data center in Abilene, Texas. Company leaders have indicated plans to build additional facilities within the state.

Meta Platforms Inc. is also constructing a new data center in Texas capable of generating one gigawatt of power—a capacity sufficient to power approximately 750,000 people simultaneously.

Microsoft Corporation signed a nearly $10 billion, five-year agreement earlier this month to secure computing capacity in Texas, further underlining the state’s growing importance in the tech infrastructure landscape.

Fermi Inc., a real estate investment trust co-founded by Rick Perry (former Governor of Texas and Energy Secretary under President Donald Trump), revealed plans to build four nuclear power reactors in Texas to support a private data center campus.

### Google’s Expanding Capital Expenditure on AI and Cloud Services

Analysts note that Google is known for its significant capital spending. This year, the company expects to invest over $90 billion in capital expenses, a figure that surpasses earlier estimates. The majority of this investment will focus on servers, customized chips, and new data centers to bolster its AI and cloud service capabilities.

With Texas emerging as a central hub for AI infrastructure, Google’s multi-billion-dollar investment signals the company’s commitment to expanding its presence in the state and the broader tech ecosystem.

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