The buildout of data center capacity for artificial intelligence applications appears to have no end, as Google (GOOG)(GOOGL) plans to spend $40B to build three new data centers in the Lone Star State by 2027, according to Bloomberg.
Two of the data centers will be built near Abilene, and the third will be constructed in Armstrong County, located in the panhandle, the report said.
“This investment will create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas,” said Google CEO Sundar Pichai, according to the report.
Texas has proven to be a hotbed of data center activity. Earlier this week, Anthropic (ANTHRO) announced it is spending $50B to build data centers to support its Claude series of AI models in Texas and New York.
The Stargate Project, a joint venture between OpenAI (OPENAI), Oracle (ORCL) and Softbank (OTCPK:SFTBY)(OTCPK:SFTBF), is building its flagship data center in Abilene. It also has plans for two more data centers in Texas.
Meta Platforms (META), which plans to invest $600B on AI infrastructure through 2028, recently broke ground on a 1-gigawatt data center in El Paso.
Texas holds several advantages when it comes to locating a data center, such as cheaper energy, a business-friendly political environment, abundant land for development, tax incentives, a centralized location and a skilled workforce.
As of April 2025, Texas had more than 400 data center facilities, according to a study by the University of Houston.