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Investing.com -- Google plans to invest $40 billion to build three new data centers in Texas by 2027, Bloomberg reported Friday, expanding its infrastructure as AI competition intensifies.
Google parent Alphabet Inc (NASDAQ:GOOGL) saw its stock tick up 1.7% in after-hours trade after the company announced that one facility will be located in Armstrong County in the Texas panhandle, while two others will be built in Haskell County near Abilene. One of the Haskell County centers will be paired with a new solar and battery storage plant to reduce strain on the power grid.
"This investment will create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas," said Alphabet CEO Sundar Pichai at an event near Dallas, where Google already operates two data centers, Bloomberg reported.
The announcement comes as major AI companies expand their data center footprints across the U.S., especially in Texas. Anthropic announced a $50 billion investment in U.S. AI infrastructure on Monday, with initial sites planned in Texas and New York. The company’s partnership with Fluidstack is expected to create approximately 800 permanent jobs and 2,400 construction positions.
OpenAI launched its Stargate Project in January 2025, committing $500 billion over four years to build AI infrastructure, including a data center in Abilene, Texas, that is now partially operational.
Meanwhile, Meta Platforms Inc (NASDAQ:META) has plans to invest $600 billion in U.S. infrastructure through 2028, focusing on AI data centers and energy projects.
