Google to invest $40 billion in new data centers in Texas
Joe Lovinger and Davey Alba
Updated Fri, November 14, 2025 at 4:50 PM EST
3 min read. In this article:
(Bloomberg) — Alphabet Inc (GOOG, GOOGL).’s Google plans to invest $40 billion in three new Texas data centers, ramping up its footprint as competitors such as OpenAI (OPAI.PVT) and Anthropic PBC (ANTH.PVT) map out their own multibillion-dollar bets in the state.
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The investment will be made through 2027, Google said in a statement Friday. One data center will be in Armstrong County, in the Texas panhandle, and two in Haskell County, a stretch of West Texas near Abilene. One of the Haskell facilities will be co-located with a new solar and battery energy storage plant designed to ease the impact on the power grid.
“This investment will create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas,” Alphabet Chief Executive Officer Sundar Pichai said at an event near Dallas, where the company already has two data center locations.
Texas has become a magnet for data centers as companies chase relatively cheap energy, vast tracts of land, and a state eager to host the infrastructure that’s powering the artificial intelligence boom. In outlining its latest plans, Google emphasized its commitment to “bringing new energy resources onto the grid, paying for costs associated with its operations, and supporting community energy efficiency initiatives.”
The company also said an electrical-training program will boost the number of apprentices in Texas with funding from Google.org’s AI Opportunity Fund.
“Texas will be the centerpiece for AI data centers for Google,” Governor Greg Abbott said at the event with Pichai. “They can come here and operate here knowing that Texas moves at the speed of business.”
Investment Plans
The state has been gaining commitments from other companies as well. Earlier this week, Anthropic announced that it will invest $50 billion in data centers across the US, including in New York and Texas, which has an abundance of land and relatively cheap energy.
The first data center being built by the Stargate venture backed by ChatGPT creator OpenAI, Oracle Corp (ORCL). and Softbank Group Corp. (SFTBY) is in Abilene, Texas, and executives have telegraphed they’ll locate more in the state.
Meta Platforms Inc. (META) is also building a new gigawatt-sized data center in Texas. For reference, a gigawatt of electricity can power 750,000 homes at any given moment. Microsoft Corp. inked a nearly $10 billion deal earlier this month for five years’ worth of computing capacity in Texas.Story ContinuesView Comments (74)
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- OpenAI’s $400 Billion Plan To Build 5 ‘Stargate Data Centers’ In The U.S. Takes Direct Aim At Microsoft And Meta In Battle For AI Supremacy
OpenAI’s $400 Billion Plan To Build 5 ‘Stargate Data Centers’ In The U.S. Takes Direct Aim At Microsoft And Meta In Battle For AI SupremacyEric McConnellOctober 16, 2025 3 min read10In this article:Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.OpenAI is taking dead aim at Microsoft (NASDAQ: MSFT) and Meta (NASDAQ: META)in the battle for AI supremacy by investing $400 billion to build five giant data centers across the U.S., according to Fortune.https://1238b427858fa192e2ae3c0626f7f88c.safeframe.googlesyndication.com/safeframe/1-0-45/html/container.htmlThe “Stargate” AI infrastructure project, which includes strategic partnerships with Oracle (NYSE: ORCL) and Japan-based SoftBank, plans to establish the data centers as the central hub for OpenAI’s U.S. capabilities. They will operate in Texas, New Mexico, Ohio, and a Midwest location that has not been revealed, Fortune reports. OpenAI’s planned Stargate data centers will draw a combined seven gigawatts of power, which would give them massive computing capability.Don’t Miss:
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- Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?“We cannot fall behind in the need to put the infrastructure together to make this revolution happen,” Altman told the assembled reporters. “What you saw today is just like a small fraction of what this site will eventually be, and this site is just a small fraction or building, and all of that will still not be enough to serve even the demand of ChatGPT.”
Cruz also stressed the strategic importance of the U.S. keeping a global competitive edge. “Message number one: America will beat China in the race for AI,” he said. Although the construction of the Abilene data center is ongoing, it is already operational due to its use of Oracle Cloud Infrastructure technology, Fortune Reports. These are the kind of side benefits OpenAI gets through the partnership.
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Despite Altman’s bullish outlook on OpenAI’s future capabilities, one threat could upend not only his plans but also Zuckerberg’s. The megawatt power needed by their proposed super data centers could place even more strain on regional energy grids than they can handle. Texas, where the latest OpenAI facility is being built, has suffered through several highly publicized, large-scale blackouts caused by the failure of its electric grid.
Cruz, however, is still confident that the Lone Star State can accommodate OpenAI’s Abilene facility. “Texas is ground zero for AI,” he added. “What do you want when you’re building AI data centers? Number one, you want abundant, low-cost energy. Welcome to the great state of Texas.”
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This article OpenAI’s $400 Billion Plan To Build 5 ‘Stargate Data Centers’ In The U.S. Takes Direct Aim At Microsoft And Meta In Battle For AI Supremacy originally appeared on Benzinga.com
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