Google taps Texas for $40B AI investment to run through 2027
November 14, 2025
Google on Friday unveiled plans to invest $40 billion in Texas over the next couple of years, which will include the development of three new data centers across the state.
The funding, which runs through 2027, will be focused on Google Cloud, artificial intelligence and energy infrastructure, as well as programs to strengthen energy capacity and affordability and workforce training.
The massive investment “will unlock substantial economic opportunity for American businesses, advance scientific breakthroughs, fortify cybersecurity for the U.S., and create new career opportunities for millions of Americans,” Google said in a release.
The announcement ― made Friday at an event in Midlothian, attended by Alphabet and Google CEO Sundar Pichai, Gov. Greg Abbott and Google’s global data center chief Amanda Peterson Corio, among others ― also represented the fulfillment of a promise the governor made in September.
At that time, he hinted that large-scale AI projects rivaling OpenAI’s Stargate facility in Abilene were on tap for other parts of the Lone Star State.
Officials said Google’s deep, longstanding investments in American technical infrastructure and research and development will help the U.S. lead the world in AI.
“They say that everything is bigger in Texas — and that certainly applies to the golden opportunity with AI,” Pichai said in a statement.
The money will “power the new era of AI innovation,” plus bring thousands of jobs and skills training to students across the state, among other things, according to the CEO.
Google also announced Friday that the first building of its Red Oak campus in Ellis County is now operational and the company has plans to construct one new data center in Armstrong County in the Panhandle and two others in Haskell County in West Texas.
One of the new Haskell data centers will be built directly alongside a new solar and battery energy storage plant.
Google is also continuing to invest in its Dallas Cloud region that it launched in 2022 at its 400-acre Midlothian campus.
U.S. Sen. John Cornyn called the investment a testament to Texas’ growing role as a hub for tech innovation.
“From our commitment to cutting red tape and fostering innovation to our talented workforce, there is no better place to do business than the Lone Star State, and I look forward to seeing Google’s positive impact on our state for years to come,” Cornyn said in a statement.
As these projects create a demand for electrical jobs, officials said the Electrical Training Alliance, with funding from Google’s AI Opportunity Fund, will boost the amount of apprentices in Texas and integrate AI tools into the curriculum.
The initiative is expected to train existing electrical workers and more than 1,700 apprentices in the state by 2030.
Some other ways the funding will be spent include: a $30 million Energy Impact Fund to scale and accelerate energy initiatives throughout Texas over three years starting in 2026, a $2.6 million contribution to Texas Water Trade, $2 million toward agriculture programs and projects, and $7 million in grants to support AI-related initiatives in health care, energy and education across the state.
This reporting is part of the Future of North Texas, a community-funded journalism initiative supported by the Commit Partnership, Communities Foundation of Texas, The Dallas Foundation, the Dallas Mavericks, the Dallas Regional Chamber, Deedie Rose, Lisa and Charles Siegel, the McCune-Losinger Family Fund, The Meadows Foundation, the Perot Foundation, the United Way of Metropolitan Dallas and the University of Texas at Dallas. The News retains full editorial control of this coverage.
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