Alphabet has announced that, through Google, it will invest a total of 40 billion dollars in three new data centres in Texas. The plan covers campuses in Armstrong County and two sites in Haskell County, complemented by expansions to the existing Midlothian facility and the Dallas cloud region. The rollout runs through 2027 and is Google's largest infrastructure investment in the United States this year.
Strategic importance of Texas
Texas offers inexpensive land, flexible permitting and a competitive energy market. For AI training and inference, a stable power supply and enough space for efficient cooling are crucial. By installing large-scale solar and battery storage right next to one of the Haskell sites, Google aims to ease grid load and add sustainable capacity.
Energy and grid impact
Local grid operator ERCOT earlier warned that data centre power consumption in Texas could double over the next five years. Google promises to create a fund for regional energy projects and is working with utilities to smooth peak demand. Experts stress that battery capacity is only effective if it can also be deployed economically during prolonged heatwaves.
Effect on suppliers and the market
Server and cooling manufacturers are seeing an increase in orders for liquid-cooling racks and modular power distribution.
Construction and installation firms benefit from multi-year work packages covering civil engineering and high-voltage connections.
Cloud competitors feel pressured to reserve similar capacity, which could drive up prices for GPU clusters.
Dutch companies can seize opportunities in specialist cooling systems, energy-efficiency services and consultancy on grid integration.
Workforce and training
Together with Texan community colleges, Google is launching a skills programme for data centre technicians. The company wants to attract local talent and shorten the time needed to onboard operational staff. According to the governor, the initiative could create thousands of jobs in construction, maintenance and IT operations.
International context
The announcement follows similar mega-deals from the likes of Anthropic and Microsoft. As AI models become larger and multimodal, demand for hyperscale locations with direct access to renewable energy keeps rising. Analysts expect North America to host more than sixty percent of global AI compute by 2026.
"This investment illustrates how capital-intensive the new AI wave is and how important regional infrastructure has become," said data-centre analyst Synergy Research.
Sources
Reuters, 15 November 2025
Business Standard, 15 November 2025
Government of Texas press release, 14 November 2025
