Google has revealed plans to invest over $1 billion in Texas this year, showing its commitment to expanding cloud and data center capabilities across the state.
This investment aims to enhance Google’s infrastructure in Texas, particularly at its data center campuses in Red Oak and Midlothian, located south of Dallas, according to BizJournals.
This new investment also represents a significant increase from last year’s commitment of $330 million, boosting Google’s investment in the state to more than $2.7 billion. The announcement was made on August 15 at an event at the Midlothian facility, attended by Sen. Ted Cruz and Rep. Jake Ellzey.
Yolande Piazza, Vice President of Financial Services at Google Cloud, expressed enthusiasm about the expansion, saying, “We’re thrilled to strengthen our commitment to Texas. Expanding our cloud and data center infrastructure in Midlothian and Red Oak reflects our confidence in the state’s ability to lead in the digital economy.”
Google’s investment includes nearly $600 million allocated to the Red Oak data center, which is currently under construction and expected to create 30 new full-time positions. This site will also be part of Google’s extensive 40-region network that provides global cloud services, as reported by BizJournals.
In addition to the infrastructure investment, Google also announced power purchase agreements with Elawan Energy, Engie North America, Grupo Cobra, and X-ELIO. These agreements will use solar energy, contributing 375 megawatts of carbon-free power to support Google’s Texas operations.
Since establishing a presence in Texas in 2007, Google has expanded its footprint with offices in Dallas, Austin, and Houston. The company reported generating $47 billion in “economic activity” across the state last year.
Additionally, another Alphabet subsidiary, Verily Life Sciences LLC, is preparing to relocate its headquarters to Dallas by the end of the third quarter. Verily plans to expand its staff at the new Dallas office, aiming to double its headcount in the next 18 months.
The rising need for cloud and AI infrastructure aligns with recent Texas investments in semiconductor and microchip production, supported by the Texas CHIPS Act of 2023, which aims to advance semiconductor research and innovation, per The Texan.
Despite its growing influence, Google has faced challenges in Texas, including delays in moving into a newly leased 35-story office tower in Austin and ongoing legal disputes with Texas Attorney General Ken Paxton.
However, as previously reported by The Dallas Express, more companies are choosing to move their headquarters to Texas, and Dallas is offering a business incentive plan for those who do.
Dallas recently lured Koya Medical Inc. from Oakland, California, to relocate its headquarters to a new 35,000-square-foot facility at 2332 and 2340 Valdina Street near the Design District.
Elon Musk has also revealed plans to move the headquarters of both SpaceX and X from California to Texas, citing political differences and the pursuit of a more favorable business climate. He confirmed the relocation in a series of social media posts.