Google is preparing to invest 40 billion dollars in Texas.

Google's Investment Move in Texas

Google announced its plan to invest $40 billion to build three new data centers in Texas by 2027. This news led to a 1.7% increase in the stock price of Alphabet Inc (NASDAQ:GOOGL) in after-hours trading amid rising competition in artificial intelligence (AI).

One of the announced facilities will be constructed in Armstrong County, located in the Texas panhandle, while the other two will be situated in Haskell County, near Abilene. One of the centers to be built in Haskell County will be integrated with a new solar energy and battery storage facility to reduce the load on the energy grid.

Alphabet CEO Sundar Pichai stated at an event held near Dallas, "This investment will create thousands of job opportunities, provide vocational training for university students and electrical interns, and accelerate initiatives to reduce energy costs across Texas."

This investment comes at a time when major AI companies continue to expand their data center investments across the United States. Anthropic announced on Monday a plan to invest $50 billion, with initial facilities to be located in Texas and New York. The company expects its partnership with Fluidstack to create approximately 800 permanent jobs and 2,400 construction positions.

OpenAI committed to invest $500 billion over the next four years to build AI infrastructure with its Stargate Project launched in January 2025. As part of this, a data center located in Abilene, Texas is currently partially operational.

Meanwhile, Meta Platforms Inc (NASDAQ:META) plans to invest $600 billion in U.S. infrastructure by 2028, focusing on AI data centers and energy projects.