Google to invest $40 billion to build new data centers in Texas
Alphabet and Google CEO Sundar Pichai on Friday announced that Google will invest $40 billion over the next two years to build three new data centers in Texas.
Midlothian, Texas data center. Image by Google.
Alphabet and Google CEO Sundar Pichai on Friday announced that Google will invest $40 billion over the next two years to build three new data centers in Texas.
Google says the move will expand the tech company’s cloud and AI infrastructure and support thousands of new jobs.
The $40 billion pledge through 2027 will include “new data centers in Armstrong and Haskell Counties and a major investment to strengthen energy resilience and abundance,” Pinchai said in a statement on X.
The investment will create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas, he said.
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“We're also providing funding to more than double the projected pipeline of new Texan electricians to power the AI era,” the CEO wrote, thanking Texas Governor Greg Abbot for his “continued support.”
“We've proudly called Texas home for 15 years,” Pinchai said.
Today, we're announcing a new $40B investment in Texas through 2027 to build Cloud & AI infrastructure and support thousands of new jobs.
undefined Sundar Pichai (@sundarpichai) November 14, 2025
This includes new data centers in Armstrong and Haskell Counties and a major investment to strengthen energy resilience and abundance. We're… pic.twitter.com/XykM8keWOY
"Google's $40 billion investment makes Texas Google's largest investment in any state in the country and supports energy efficiency and workforce development in our state," Abbott said about the announcement.
Armstrong County, the site of one of the data centers is in the Texas Panhandle, and the other two in Haskell County, is considered the region of West Texas near Abilene.
Alphabet said it will also invest in its existing Midlothian campus and Dallas cloud region, part of its global network of 42 cloud regions, Reuters reported.
Race to build
Ever since Sam Altman’s ChatGPT hit the market in November 2022, there has been a rush to build the AI infrastructure capable of supporting advanced large language models and the power needed to run them.
OpenAI, Microsoft, Meta Platforms, and Amazon are just a few of the major players who are already investing billions in the development of new energy sources and the construction of data centers.
Experts estimate that AI will most likely account for nearly half of data center power consumption by the end of this year. Currently, there are more than 10,000 data centers operating around the world today, with about half located in the US.
In January, President Trump and OpenAI's Sam Altman announced the $500 billion Stargate project – a joint venture between OpenAI, Oracle, and SoftBank, aimed at boosting the nation’s AI infrastructure and staying ahead of China.
“The project [to build five new data centers] will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies,” Altman, OpenAI's CEO and co-founder, said at the time.
Microsoft and OpenAI also joined forces this spring to construct a $100 billion data-center complex to house an AI supercomputer.
Earlier this week, Anthropic announced it would invest $50 billion in data centers across the US, including those in New York and Texas.
Google, which in September announced the opening of a new data center near London, on Tuesday announced it would invest close to $6.5 billion to expand infrastructure and data center capacity in Germany.
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