Google Bets $40 Billion on Texas Buildout of U.S. AI Infrastructure
Google announced its largest-ever investment in any U.S. state on Friday, committing $40 billion to Texas through 2027 to add three new data center campuses and make the Lone Star State a centerpiece of its global AI data center footprint.
The announcement came at Google’s data center facility in Midlothian, where Alphabet and Google CEO Sundar Pichai joined Gov. Greg Abbott, U.S. Deputy Secretary of Energy James Danly, U.S. Rep. Jake Ellzey, and Amanda Peterson Corio, Google’s global head of data center energy.
“We are making a new $40 billion investment in the Lone Star State,” Pichai said at the event. “This includes plans for three new data center campuses, one in Armstrong County and two in Haskell County.”
The investment bundles cloud and artificial intelligence infrastructure, energy capacity initiatives, continued buildout in North Texas, and workforce training programs.
“This is a Texas-sized investment in the future of our great state,” Abbott said. “Texas is the epicenter of AI development, where companies can pair innovation with expanding energy.” The investment, he said, is “Google’s largest investment in any state in the country and supports energy efficiency and workforce development in our state.”
Google makes Texas its AI infrastructure anchor
“Texas will be the centerpiece for AI data centers for Google,” said Abbott.
Pichai explained why Texas was selected for the massive investment. “Data centers of that scale require a few things: good, pro-innovation regulatory environments, land, and especially energy,” he said in Midlothian. “Happily, we found all three in Texas.”
Thanking Abbott for “leading the way,” Pichai added, “They say everything is bigger in Texas, and I think that applies to the golden opportunity with AI, the optimism, the talent, the policy environment, and the innovation needed to lead this new era and create immense benefits for everyone.”
The multi-billion-dollar investment will “create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas,” he said.
The three new West Texas data centers expand Google’s data center footprint, which already includes Ellis County campuses in Midlothian and Red Oak. Google has maintained a Texas presence for more than 15 years, Pichai said, with thousands of employees across the state and offices in Dallas, Austin, and Houston.
Net-positive power additions to the grid and Google’s “first industrial park”
Energy strategy emerged as a central theme of the announcement, with Google committing to be a net-positive contributor to the Texas grid as it builds out new AI infrastructure.
“When we invest in data centers, part of our core strategy is to invest significantly in new energy capacity, which increases supply and ensures grid abundance for everyone,” Pichai said from the podium. “In Texas, we work with local utility partners to add more than 6,200 megawatts of net new energy generation and capacity to the grid to keep costs low.”
According to Google’s news release, the company has power purchase agreements with energy developers such as AES Corporation, Enel North America, Clearway, ENGIE, Intersect, SB Energy, Ørsted, and X-Elio.
Abbott noted Google has provided a net new addition of five gigawatts of power to the Texas grid so far — and committed to be net positive to the power grid as the build continues, “making sure we have the reliability and the supply that Texas needs to keep the lights on for all of our fellow Texans.”
In terms of energy scale, 5 gigawatts is equivalent to 5,000 megawatts.
One of the new Haskell County data centers will be built directly alongside a new solar and battery energy storage plant. Pichai said Google’s first industrial park, developed through a partnership with Intersect Power, will be co-located at the Haskell data center. “Co-locating energy supply with data center load has some powerful benefits. It can unlock the development of new transmission infrastructure and optimize utilization of the existing grid,” he said.
Google announced its industrial park partnership with Intersect and TPG Rise Climate last year, described as a strategic collaboration to develop “powered land” to allow the data center to run mostly on carbon-free electricity produced nearby.
U.S. Deputy Secretary of Energy on AI’s power demands
James Danly, the U.S. Deputy Secretary of Energy and the second-highest official at the Department of Energy, used the Midlothian announcement to zoom out to the national stakes of AI’s rising power needs.
“We’re going to need 100 gigawatts over the next number of years in order to satisfy the demand as we projected,” he said, noting the investment comes “at the same time as the President’s agenda focuses on ensuring safe, reliable, affordable, secure power for everybody, in abundance.”
In the company’s news release, Danly framed Google’s move as directly tied to that agenda. “This historic investment from Google advances this administration’s goal of winning the AI race,” he said in a statement. “Google is working to sustain and enhance America’s global AI dominance, economic competitiveness and national security while ensuring that energy remains reliable, affordable and secure.”
Danly also pointed to Texas policy as a key enabler of projects on this scale. “This is a state that has ensured energy abundance for everybody. It has made it possible to deploy new resources rapidly,” he said. “This is a model for how such projects should be done going forward, and the United States is going to be put in a very good position as a result of such projects.”
Pichai also tied the announcement to federal policy and thanked the administration. “We won’t be here without the leadership of President Trump and the White House AI action plan,” he said.
Google is investing $40B in Texas to expand AI data centers, energy projects, and workforce programs across the state.
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