investment amid AI boom
By Juby Babu, Reuters | Posted - Nov. 15, 2025 at 7:36 a.m.
Alphabet's Google said on Friday it would invest $40 billion in three new data centers in Texas, as part of its push to expand capacity for artificial intelligence initiatives. (Carlos Jasso, Reuters)
KEY TAKEAWAYS
- Google plans a $40 billion investment in Texas data centers by 2027.
- The investment aims to expand AI capacity amid growing competition in the sector.
- Thousands of jobs and skills training will be created, enhancing Texas's economy.
The investment, which will be made through 2027, underscores the intensifying competition among AI and cloud service providers to build infrastructure capable of supporting advanced AI models.
OpenAI, Microsoft, Meta Platforms and Amazon are among companies spending billions in new AI-focused data centers.
Google said one of the new data centers will be in Armstrong County, in the Texas Panhandle, and the other two in Haskell County, a stretch of West Texas near Abilene.
"This investment will create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas," Alphabet CEO Sundar Pichai said in a statement.
The company will also invest in its existing Midlothian campus and Dallas cloud region, part of its global network of 42 cloud regions.
"Google's $40 billion investment makes Texas Google's largest investment in any state in the country and supports energy efficiency and workforce development in our state," Texas Gov. Greg Abbott said in the same statement.
Tech companies have announced massive spending plans this year, with many focusing on expanding their U.S. footprint, as President Donald Trump pushes for investments to maintain the country's edge in the AI sector.
Earlier this week, Anthropic said it would invest $50 billion in data centers across the U.S., including New York and Texas.
Google on Tuesday announced it would invest $6.41 billion in Germany in the coming years in a push to expand its infrastructure and data center capacity in Europe's largest economy.
The latest AI investment surge echoes past tech bubbles, with valuations and spending outpacing near-term returns, some analysts and investors have warned. They say demand projections may prove overly optimistic if AI adoption does not grow at a similar pace as capital expenditure.
The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.
Google plans $40B Texas data center investment amid AI boom
Alphabet's Google said on Friday it would invest $40 billion in three new data centers in Texas, as part of its push to expand capacity for artificial intelligence initiatives.
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