Google announced a sweeping $40 billion investment in Texas that will run through 2027, marking the company’s largest commitment to any U.S. state and reinforcing Texas’ position as one of the fastest-growing centers for artificial intelligence infrastructure. The plan, unveiled during a community gathering in Midlothian attended by federal, state, and local officials, includes three new data center campuses and a range of energy, water, and workforce initiatives designed to support long-term growth in high-density computing.
The new facilities will include campuses in Armstrong County and two in Haskell County, complementing Google’s ongoing expansion in Ellis County and the Dallas cloud region. State leaders described the move as a milestone in Texas’ evolving role in advanced computing, noting that the state’s combination of land availability, expanding workforce, and large energy market has drawn increasing attention from global technology companies.
Rural Counties Move to the Forefront of High-Tech Development
The investment represents a major shift for the rural Panhandle and West Texas, areas historically defined by agriculture and traditional energy production. Local leaders said the tech sector’s arrival is expected to diversify local economies and support stable, long-term employment. Officials in Armstrong and Haskell counties characterized Google’s projects as transformational, positioning their communities at the edge of the global digital economy.
Google’s entry adds to a growing cluster of data center development in the region. Armstrong County commissioners recently approved a revised tax abatement structure for Crusoe Energy’s 3.5-million-square-foot AI data center complex south of Claude. Four buildings are already under construction, and the county’s updated agreement ties revenue to individual buildings as they come online, allowing earlier financial benefits that could begin in 2026. County officials said this structure reduces uncertainty by generating revenue as each phase becomes operational.
Leaders in Armstrong County also signaled continued interest in other major projects, including Fermi America’s proposed 18-million-square-foot data center and energy campus in neighboring Carson County. With multiple developments now advancing across the region, local governments are preparing for an influx of infrastructure planning, workforce needs, and utility coordination.
Statewide Data Center Growth Accelerates
Texas has rapidly expanded its hyperscale data center footprint, driven by the demands of cloud computing and AI development. Companies have been drawn to the ERCOT grid, access to renewable energy, and large tracts of developable land. Google recently opened the first building of its Red Oak campus in Ellis County and continues to enlarge its Midlothian footprint and Dallas cloud region, which forms part of the company’s global network of 42 cloud regions.
Federal energy officials at the event said the surge in AI-driven computing reflects broader national efforts to strengthen U.S. competitiveness in emerging technologies. They noted that large-scale data center growth is likely to increase statewide electricity demand, making coordination between developers and grid operators increasingly important.
State leaders also framed the expansion as part of a national strategy to reinforce the country’s capabilities in AI, cybersecurity, and digital infrastructure.
Energy Commitments Tailored to High-Power AI Demands
Because AI computing requires significant, steady electricity, Google outlined several measures aimed at pairing energy supply with data center load. These include more than 6,200 megawatts of new energy generation and capacity through agreements with developers such as AES, Enel, Clearway, and Orsted. The company also plans to build a co-located solar and battery storage project at one of the Haskell County campuses through partnerships with Intersect Power and TPG Rise Climate, aligning on-site energy production with continuous compute needs.
Beginning in 2026, Google will launch a $30 million Energy Impact Fund to support weatherization efforts, energy-efficiency improvements, and workforce development in surrounding communities. Company officials said that integrating energy solutions directly with data center design can reduce strain on regional transmission systems and support long-term grid planning.
Water and Environmental Programs
Google stated that its Texas facilities will rely on advanced air-cooling systems, significantly lowering water usage and limiting consumption to non-computing activities such as kitchens and employee services. To support regional environmental restoration, the company committed $2.6 million to Texas Water Trade for projects aimed at restoring up to 1,000 acres of wetlands in the Trinity–San Jacinto Estuary. The restoration is expected to provide millions of gallons of freshwater annually.
Additional funding exceeding $2 million will support agricultural and irrigation-efficiency programs, including regenerative farming initiatives in North Texas and water-saving technologies for producers in the High Plains.
Preparing the Workforce for AI-Era Jobs
With demand rising for skilled trades and technical roles, Google established a partnership with the electrical training ALLIANCE to prepare more than 1,700 apprentices for data-center-related careers by 2030. Support from Google.org’s AI Opportunity Fund will help expand access to training and certificates.
The company also allocated $7 million for AI-related programs in healthcare, energy, and education, including rural medical outreach through CareMessage, research initiatives at the University of Texas and Texas Tech University, and digital-skills programs at Houston Community College. Colleges across Texas — from the state’s flagship universities to regional community colleges — are participating in Google’s AI for Education Accelerator, which provides free AI coursework and credential programs.
A Growing Digital Corridor in the Panhandle and Beyond
Local officials noted that Google’s expansion, together with developments by Crusoe Energy and the proposed Fermi America campus, marks a significant shift in how rural Texas engages with national technology trends. Communities long anchored by agriculture and traditional energy increasingly find themselves at the center of the country’s fastest-growing AI and cloud-computing corridor.
