Google Commits $40 Billion to Build Three AI Data Centers in Texas, Marking Its Largest Single-State U.S. Investment
Abstract
Google announced a $40 billion investment to build three artificial intelligence data centers in Texas—the company’s largest single-state investment in the United States. The project, set to continue through 2027, aims to expand AI computing infrastructure and is expected to create thousands of jobs.
On Friday, November 14, 2025, Sundar Pichai, CEO of Alphabet (Google’s parent company), unveiled this major investment plan at Google’s data center in Midlothian, Texas. Texas Governor Greg Abbott attended the announcement.
Investment Scale and Construction Plans
According to Google’s statement, the $40 billion investment will be completed by 2027 to construct three new data centers. One will be located in Armstrong County in the northern Texas Panhandle, while the other two will be situated in Haskell County in West Texas, near Abilene.
Notably, one of the Haskell County data centers will be co-located with a newly built solar and battery energy storage facility, designed to reduce strain on the local power grid and reflecting Google’s commitment to energy sustainability.
Economic and Employment Impact
At the event, Pichai remarked, “They say everything is bigger in Texas—and that certainly applies to the golden opportunities brought by AI.” He emphasized that this investment would create thousands of jobs, provide skills training for college students and electrical apprentices, and accelerate affordability initiatives for energy across Texas.
Governor Abbott stated in his remarks, “Google’s $40 billion investment is the company’s largest ever in Texas and supports our state’s energy efficiency and workforce development.” He stressed that the U.S. must ensure it remains at the forefront of the AI revolution, and Texas is the ideal place to achieve that goal.
If realized, this plan will make Texas home to the world’s largest concentration of Google AI data centers.
Industry Competitive Context
This announcement comes amid intense competition among tech giants to build AI infrastructure. Earlier this week, AI company Anthropic announced a $50 billion investment to construct data centers across the U.S., including in New York and Texas. The first data center for the Stargate project—backed by OpenAI, Oracle, and SoftBank Group—is currently under construction in Abilene, Texas. Additionally, Meta is building a gigawatt-scale data center in Texas, and Microsoft has signed a nearly $10 billion agreement to secure computing capacity in Texas over the next five years.
Google had already invested in Texas prior to this announcement. Since 2019, the company has built data centers in Midlothian and Red Oak, with a previous total investment in the state of $2.7 billion. On November 14, 2025, Google announced that the first building at its Red Oak campus had become operational.
Energy and Infrastructure Challenges
Data centers are energy-intensive facilities housing servers that provide computing power, along with fans and cooling systems to prevent equipment overheating. According to the Electric Reliability Council of Texas (ERCOT), electricity demand could nearly double by 2030 due to rapid data center expansion and overall growth in the state.
Google stated it will commit to adding 5 gigawatts of power to the ERCOT grid and pledged to remain a net-positive energy user. The solar and battery storage facility accompanying the Haskell County data center is also a key measure to address this challenge.
Global Investment Strategy
Beyond its Texas investment, Google is significantly increasing its AI infrastructure investments worldwide. On November 12, the company announced plans to invest €5.5 billion (approximately $6.41 billion) in Germany over the coming years to expand infrastructure and data center capacity in Europe’s largest economy. Previously, Google committed $15 billion to build an AI infrastructure hub in southern India and pledged to invest more than $6.5 billion in the UK to advance the country’s AI industry.
Market Attention and Controversy
Google expects its capital expenditures in 2025 alone to exceed $90 billion, with the majority allocated to servers, custom chips, and new data centers to support its AI and cloud computing businesses.
However, some analysts and investors have expressed concerns about the current AI investment boom, warning that this wave of massive spending may resemble past tech bubbles, where valuations and expenditures are outpacing short-term returns. If AI adoption fails to keep up with the pace of capital spending, demand forecasts could prove overly optimistic.
Nonetheless, this surge in spending aligns with broader U.S. government strategy. President Trump is actively encouraging companies to increase investments to maintain America’s leadership in AI.
Other Investment Developments
In addition to Google, Texas has attracted investments from several other tech giants. NVIDIA previously announced plans to create manufacturing spaces for AI supercomputers in Dallas and Houston. Meta stated it would invest $600 billion to build AI data centers across the U.S., though specific states have not yet been identified.
Notably, Fermi Inc.—a real estate investment trust co-founded by former Texas Governor Rick Perry, who served as U.S. Energy Secretary during Trump’s first presidential term—plans to build four nuclear reactors in Texas dedicated exclusively to powering private data center campuses.
Texas continues to draw substantial tech investment primarily due to its abundant land availability, relatively low energy costs, and strong policy support. The state is striving to maintain its “open for business” environment while ensuring infrastructure can meet the demands of this rapid growth.