Gov. Greg Abbott and Google executives speak in Midlothian during the announcement of Google’s $40 billion investment in Texas. Photo courtesy of the Office of the Governor.
Google will invest $40 billion in Texas to build new data center campuses, expand AI infrastructure, strengthen energy capacity, and launch large-scale workforce training programs, Governor Greg Abbott announced in Midlothian. The initiative marks Google’s largest investment in any state in the United States.
The funding comes through Google’s “Investing in America” initiative and will support new data center development across North Texas, West Texas, and the Panhandle, alongside programs focused on energy affordability and technical training as AI-driven demand for electricity accelerates nationwide.
“This is a Texas-sized investment in the future of our great state,” Abbott said. “Texas is the epicenter of AI development, where companies can pair innovation with expanding energy. 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. We must ensure that America remains at the forefront of the AI revolution, and Texas is the place where that can happen.”
Google and Alphabet CEO Sundar Pichai said the scale of the project underscores the company’s long-term commitment to Texas and the rapidly rising power needs of AI systems.
“They say that everything is bigger in Texas – and that certainly applies to the golden opportunity with AI,” Pichai said. “The $40 billion investment we announced today will bring three new data center campuses to the state to power the new era of AI innovation. This investment will create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas.”
Texas’ Grid Under Strain from AI Growth
Google’s announcement comes as Texas experiences a sharp increase in energy demand driven by AI and data center growth. OpenAI’s ChatGPT systems run on a Microsoft Azure facility in San Antonio—operating on more than 7,500 virtual machines—which has become part of a statewide surge in high-intensity data workloads, as previously reported by The Dallas Express.
Analysts warn that Texas data center electricity use could triple within the decade, contributing to rising power costs and putting additional pressure on the state grid.
Google’s investment includes initiatives aimed at expanding energy capacity and affordability across Texas to support AI development while reducing strain on the power system.
Texas Emerging as a National Technology and Finance Hub
The announcement also follows a series of moves positioning Texas—notably Dallas—as a national center for both technology and finance, as previously reported by The Dallas Express. The Texas Stock Exchange (TXSE) received approval from the U.S. Securities and Exchange Commission this fall and is expected to begin trading in 2026, giving Texas a homegrown competitor to Wall Street.
Combined with Google’s expansion and the recent launch of NYSE Texas as a secondary trading hub, state officials say Texas is solidifying its status as a leading destination for capital investment, data infrastructure, and AI-driven economic growth.
Broader Investment Across Texas
Google has maintained a presence in Texas for more than 15 years, with offices in Austin, Dallas, and Houston; data centers in Midlothian and Red Oak; and a cloud region in Dallas. The company says:
- More than 1.62 million Texas businesses use Google tools at no cost
- More than 1,046,000 Texans have been trained through Google’s digital skills programs
- The company is evaluating two Texas sites for manufacturing TPU- and GPU-based advanced AI systems to be established by 2027
The announcement was attended by U.S. Deputy Secretary of Energy James Danly, Google Global Head of Data Center Energy Amanda Peterson Corio, and additional Google leaders and state officials.
