Google has announced a major $40 billion investment in Texas through 2027 to expand its cloud computing and artificial intelligence infrastructure, reinforcing the company’s long-term presence in the state. The funding will support the development of new data center campuses in northern Texas, adding to Google’s operations in the Lone Star State, which span more than 15 years. According to the company, the investment aims to strengthen Texas’ workforce and infrastructure while ensuring the United States maintains global leadership in AI technology.
This announcement continues a trend of significant tech investments in Texas. The state’s deregulated energy market and abundant renewable energy sources make it an attractive hub for large-scale data center projects, despite concerns about energy grid stability. The 2021 winter storms, which caused widespread outages, highlighted these challenges, prompting companies to consider energy resilience as a priority.
Google’s move aligns with other major technology players investing heavily in the region. OpenAI has launched its $500 billion “Stargate” project, including 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 established a major manufacturing facility. Oracle also moved its headquarters to Austin, and Samsung is building a $17 billion semiconductor plant in Taylor, Texas.
As part of the investment, Google is establishing a $30 million Energy Impact Fund to support local energy initiatives and improve community resilience. The company plans to introduce new energy resources to the grid and cover operational costs while supporting energy efficiency projects in nearby communities, addressing concerns about the impact of high-demand data centers.
Google also noted in its earnings call that it anticipates capital expenditures of $91–93 billion in 2025, reflecting ongoing investments in data centers and computing power to advance AI capabilities. This massive commitment underscores Texas’ strategic role in the expansion of the US technology infrastructure and the broader growth of AI and cloud computing operations.