Google to Invest $40 Billion in Texas to Expand AI and Cloud

Google announced on Friday a major $40 billion investment in Texas through 2027 to build new cloud computing and artificial intelligence infrastructure, marking the latest in a wave of large-scale tech investments in the state.

The funds will support the development of new data center campuses in northern Texas, expanding Google’s presence in the Lone Star State, where it has operated for more than 15 years.

“Our latest investment in Texas is designed not only to support the state’s workforce and infrastructure but also to ensure the US retains the technical backbone to lead the world in AI,” Google said.

The announcement continues a trend of major technology firms making significant investments in Texas. The state’s deregulated energy market and abundant renewable energy resources have made it attractive for data center development, even as rising energy demands have raised concerns about grid stability — particularly after the 2021 winter storms that caused widespread outages.

OpenAI, the maker of ChatGPT, has committed to one of the largest projects with its $500 billion “Stargate” initiative, featuring a flagship data center campus in Abilene, Texas.

Meta, the parent company of Facebook, has invested billions in Fort Worth data centers, while Tesla relocated its headquarters to Austin in 2021 and built a major manufacturing facility. Oracle also moved its headquarters to Austin, and Samsung recently announced a $17 billion semiconductor plant in Taylor, Texas.

As part of its $40 billion commitment, Google is establishing a $30 million Energy Impact Fund to support local energy initiatives. The company pledged to add new energy resources to the grid, cover costs related to its operations, and back community energy efficiency projects.

In its latest earnings call, Google reported expected 2025 capital expenditures of $91–$93 billion, reflecting its massive investment in data centers and computing power to advance its AI ambitions.