Google on Friday announced a sweeping $40 billion investment in Texas through 2027, aimed at building new cloud computing and artificial intelligence infrastructure — the latest in a surge of major tech investments across the state.
According to the company, the funding will support the development of new data center campuses in northern Texas, expanding Google’s footprint in the Lone Star State, where it has operated for more than 15 years.
In a blog post, Google said the new investment is intended not only to boost Texas’ workforce and infrastructure, but also to ensure that the United States maintains the technological foundation needed to lead the world in AI.
The announcement reinforces Texas’ growing status as a magnet for major technology firms.
The state’s deregulated energy market and access to large renewable power supplies have made it a prime location for data centers — although the rising electricity demands of such facilities continue to raise concerns about grid stability, especially after the 2021 winter storm that led to severe outages.
OpenAI, maker of ChatGPT, is pursuing one of the largest tech projects in U.S. history with its $500 billion “Stargate” data center initiative, anchored by a flagship campus in Abilene, Texas.
Meta has invested billions of dollars into its Fort Worth data centers, while Tesla moved its headquarters to Austin in 2021 and has since established a major manufacturing hub there.
Oracle also moved its headquarters to Austin, and Samsung announced a $17 billion semiconductor plant in Taylor, Texas.
As part of its commitment, Google is establishing a $30 million Energy Impact Fund to aid energy initiatives in Texas as communities increasingly worry about the strain data centers put on local power supply.
Google pledged to bring new energy resources onto the grid and pay for costs associated with its operations while supporting community energy efficiency initiatives.
The company said in its latest earnings call that it expects 2025 capital expenditures of $91-$93 billion, reflecting massive investments in data centers and computing power to fulfill its AI ambitions.
