Google Announces $40 Billion Investment in Texas Data Centers to Accelerate AI Expansion

• 

  Newsroom

• November 16, 2025

• Newsroom

Google Announces $40 Billion Investment in Texas Data Centers to Accelerate AI Expansion

Alphabet’s Google announced Friday that it will invest $40 billion to build a network of new data centers across Texas, marking one of the largest single-state investments in the company’s history and a major escalation of the national race to expand artificial intelligence (AI) infrastructure.

According to the company, the multi-year initiative will include a new data center in Armstrong County, located in the Texas Panhandle, and two additional sites in Haskell County near Abilene. The full investment is expected to be deployed through 2027.

“This commitment will create thousands of jobs, provide hands-on training for college students and electrical apprentices, and support new energy-access initiatives throughout Texas,” Alphabet CEO Sundar Pichai said in a statement shared with Reuters.

Google has operated in Texas for 15 years, and the massive expansion underscores the intensifying competition among AI and cloud service providers working to build facilities capable of powering advanced large-scale models and high-demand computing workloads.

Texas Officials Welcome the Expansion

Texas Governor Greg Abbott praised the announcement, calling it a milestone for the state’s tech economy.
“Google’s $40 billion investment makes Texas the company’s largest investment in any state in the nation and strengthens our leadership in energy efficiency and workforce development,” Abbott said.

Local leaders expect the project to generate new employment opportunities in construction, engineering, energy operations, and data-center management.

National Concerns Over Data Center Growth

While Texas leaders celebrate the investment, residents in other parts of the country are expressing concerns over similar large-scale infrastructure proposals.

In Tarboro, North Carolina, residents urged town officials earlier this year to reject a 50-acre, 300-megawatt energy-storage project, citing fears over heavy water and electricity consumption, potential strain on natural resources, and anticipated increases in utility rates.

Community members in Menomonie, Wisconsin, voiced similar concerns over a mystery company’s proposed $1.6 billion data-center facility, warning it could overwhelm local water supplies and drive up power bills.

Tech giants including OpenAI, Microsoft, Meta Platforms, and Amazon are all investing billions into AI-optimized data centers, fueling both economic booms and community pushback across multiple states.

About the Investment

The new Texas sites will play a critical role in expanding Google’s AI and cloud capabilities, serving corporate, government, and consumer demand for increasingly complex computing. Each facility will require substantial power resources, and Google says it is working with local partners to advance clean-energy and grid-efficiency initiatives.

Reuters contributed reporting to this story.

Original article source: Google to invest $40B in Texas data centers in major AI push