Google to invest $40 billion in Texas for AI development

(AFP) Google on Friday announced a $40 billion investment in Texas for artificial intelligence (AI) development, amid an expansion by the tech giants in this southern territory of the United States.

This investment, which will run through 2027, will enhance Google's cloud infrastructure and AI capabilities, including data center development, programs to strengthen energy capacity and affordability and job training initiatives in the state, according to a statement from the Texas governor's office.

"It will bring three new data center campuses to the state to drive the new era of artificial intelligence innovation," create thousands of jobs, provide training for college students and accelerate energy accessibility initiatives across Texas, Google and Alphabet CEO Sundar Pichai said in turn.

Texas Governor Greg Abbott and Pichai made the announcement from one of Google's data centers in the northern Texas city of Midlothian.

The investment is part of the explosive competition among tech giants such as OpenAI, Microsoft, Meta, Amazon and Google to build infrastructure that supports advanced AI models.

The state's deregulated energy market and access to renewable energy sources have made it an attractive location for data center development, even as the energy demands of these facilities have raised concerns about the stability of the power grid, especially after winter storms in 2021 caused widespread outages.

OpenAI, creator of ChatGPT, has made one of the most ambitious commitments with its $500 billion "Stargate" project, whose main data center campus is in Abilene, Texas. 

Meta, Facebook's parent company, has invested billions in data centers in Fort Worth, while Tesla moved its headquarters to Austin in 2021 and built a major manufacturing plant there.

Oracle also moved its headquarters to Austin, and Samsung announced a $17 billion semiconductor plant in Taylor, Texas.

As part of its commitment, Google is establishing a $30 million Energy Impact Fund to support energy initiatives in Texas, in response to growing community concerns about the pressure on local power supplies from data centers.