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Google commits $40B to expand cloud and AI data center infrastructure in Texas

Attendees await the arrival of Texas Gov. Greg Abbott and Alphabet and Google CEO Sundar Pichai at the Google Midlothian Data Center in Midlothian, Texas, November 14, 2025.  (AFP Photo)
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Attendees await the arrival of Texas Gov. Greg Abbott and Alphabet and Google CEO Sundar Pichai at the Google Midlothian Data Center in Midlothian, Texas, November 14, 2025. (AFP Photo)
November 15, 2025 09:43 AM GMT+03:00

U.S.-based tech giant Google announced Friday a $40 billion investment plan for Texas through 2027 to expand the company’s cloud computing and artificial intelligence infrastructure, building on more than 15 years of operations in the state.

The company said the funds will be used to build new data-center campuses across northern Texas. Data centers host cloud services and AI-related workloads and require significant physical infrastructure, including secure servers, cooling systems, and high-capacity electricity connections.

A growing concentration of tech projects in Texas

In a statement, Google said the latest investment is intended to support the state’s workforce and infrastructure while helping the United States maintain the computing capacity required for AI development.

Google’s move adds to a series of large technology deployments in Texas in recent years. OpenAI is developing its $500 billion Stargate project, anchored by a data-center campus in Abilene. Meta, the parent company of Facebook, has invested billions of dollars in data-center construction in Fort Worth. Tesla relocated its headquarters to Austin in 2021 and built a major manufacturing complex there, while Oracle also moved its headquarters to the Texas capital. Samsung has announced plans for a $17 billion semiconductor plant in the city of Taylor.

Companies have cited Texas’ deregulated electricity market and access to renewable energy sources as key attractions for energy-intensive data-center operations. At the same time, rising power consumption from these facilities has drawn public attention, particularly after the winter storms of 2021 that caused widespread outages across the state.

A detail view of a podium during an event with Texas Gov. Greg Abbott and Alphabet and Google CEO Sundar Pichai at the Google Midlothian Data Center in Midlothian, Texas, November 14, 2025. (AFP Photo)
A detail view of a podium during an event with Texas Gov. Greg Abbott and Alphabet and Google CEO Sundar Pichai at the Google Midlothian Data Center in Midlothian, Texas, November 14, 2025. (AFP Photo)

Record spending planned for 2025

Google is launching a $30 million Energy Impact Fund as part of its Texas investment package. The company said the fund will support local energy initiatives, including efforts to expand electricity resources and community efficiency programs. It also pledged to pay costs associated with integrating its facilities into the state’s power grid.

Google told investors in its latest earnings call that it expects capital expenditures of $91 billion to $93 billion in 2025. The company said this increase stems from growing demand for data-center infrastructure and computing power as it expands AI-related products and services.

November 15, 2025 09:43 AM GMT+03:00
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