Google to Invest $40 Billion in Three New Texas Data Centers to Power AI

Google said it will invest $40 billion to build three new data centers in Texas as part of a push to expand capacity for artificial intelligence work. The spending will occur through 2027 and underscores growing competition among cloud and AI firms to add large-scale computing infrastructure.

One site will be in Armstrong County the other two will be in Haskell County, near Abilene. Google also plans upgrades at its Midlothian campus and in the Dallas cloud region, adding to its global network of cloud locations.

Alphabet CEO Sundar Pichai said the project will create thousands of jobs, offer training for college students and electrical apprentices, and support energy-affordability efforts across Texas. Texas Governor Greg Abbott called the plan Google’s largest investment in any U.S. state and said it will help workforce development and energy efficiency.

The announcement comes amid a broader wave of U.S. AI-related investments. President Donald Trump has encouraged domestic tech spending, and recent moves include Anthropic’s plan to invest $50 billion in U.S. data centers. Google also announced a separate €5.5 billion  investment to expand data center capacity in Germany.

Some analysts caution that this surge in AI spending resembles prior tech booms; they warn that returns may lag if AI adoption does not keep pace with these capital commitments.