Alphabet (GOOGL) Stock: Google Commits $40 Billion to Texas Data Centers in AI Push

TLDR

• Google plans to invest $40 billion in three new data centers in Texas through 2027, marking its largest investment in any U.S. state.
• One facility will be located in Armstrong County and two in Haskell County, with one Haskell site co-located with a solar and battery storage plant.
• The investment comes as tech giants compete to build AI infrastructure, following Anthropic’s $50 billion announcement and Microsoft’s nearly $10 billion Texas deal.
• Google expects to spend over $90 billion on capital expenditures this year, with most funds going toward servers, chips, and data centers for AI and cloud services.
• Texas Governor Greg Abbott emphasized the state’s appeal for data center investment, citing cheap energy, available land, and business-friendly policies.

Google announced Friday it will invest $40 billion in three new Texas data centers through 2027. The move represents the company’s largest state-level investment in the United States.

Alphabet CEO Sundar Pichai made the announcement at an event near Dallas. The company already operates two data center locations in the area.

One facility will be built in Armstrong County in the Texas panhandle. Two additional centers will be constructed in Haskell County near Abilene in West Texas.

Alphabet Inc., GOOGL

One of the Haskell County facilities will share space with a new solar and battery energy storage plant. Google said this setup will help reduce strain on the local power grid.

Pichai said the investment will create thousands of jobs across the state. The company also plans to fund skills training programs for college students and electrical apprentices through its AI Opportunity Fund.

Texas Emerges as Data Center Hub

Texas has attracted major tech companies seeking to expand their AI infrastructure. The state offers relatively cheap energy, large plots of available land, and a pro-business regulatory environment.

The announcement follows similar commitments from other tech giants. Anthropic revealed plans earlier this week to invest $50 billion in U.S. data centers, including facilities in Texas and New York.

Microsoft signed a nearly $10 billion deal this month for five years of computing capacity in Texas. Meta Platforms is building a gigawatt-sized data center in the state.

Competition Heats Up for AI Infrastructure

The Stargate venture is building its first data center in Abilene. OpenAI, Oracle, and Softbank Group back the project.

Executives have indicated they plan to build more facilities in Texas. Fermi Inc., co-founded by former Texas Governor Rick Perry, plans to build four nuclear reactors for a private data-center campus in the state.

Google’s Texas investment is part of a broader global expansion strategy. The company expects to spend over $90 billion on capital expenditures this year.

That figure represents a substantial increase from earlier projections. Most of the spending will go toward servers, custom chips, and new data centers to support AI and cloud operations.

Google announced a $15 billion AI infrastructure hub in southern India over the past two months. The company pledged $6.4 billion for computing resources in Germany.

Google also committed more than $6.5 billion to AI development in the UK. The spending reflects the company’s push to expand beyond its core search advertising business.

Google will also invest in its existing Midlothian campus and Dallas cloud region. These sites are part of the company’s global network of 42 cloud regions.

The investment creates thousands of jobs and includes funding for electrical training programs. Google.org’s AI Opportunity Fund will support the expansion of apprentice programs in Texas.

Some analysts have warned the current AI investment surge mirrors past tech bubbles. They caution that spending may outpace near-term returns if AI adoption doesn’t grow as quickly as capital expenditures.

The three new Texas data centers will join Google’s existing infrastructure network. Construction will take place over the next two years with completion expected by 2027.

The post Alphabet (GOOGL) Stock: Google Commits $40 Billion to Texas Data Centers in AI Push appeared first on CoinCentral.