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Google LLC announced Aug. 15 plans to invest more than $1 billion in Texas this year, its latest strategic goal focused on supporting cloud and data center infrastructure.
Some of that investment will go directly into the technology giant’s data center campuses in Red Oak and Midlothian, both south of Dallas, which are helping the company meet the increasing demand for cloud and artificial intelligence services. This capital outlay will boost California-based Google's total investments in Texas to more than $2.7 billion, the company announced Aug. 15.
The $1 billion figure would represent an increase of around 200% from the $330 million investment pledged last year in Texas by Google.
The Alphabet Inc. (Nasdaq: GOOG) subsidiary revealed the investment plans at a morning event attended by Sen. John Cornyn and Rep. Jake Ellzey at the Midlothian facility.
"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,” Yolande Piazza, vice president of financial services at Google Cloud, said in a statement. "Together with Texas's talent and vibrant customer base, we’ll meet growing demand for Google Cloud and AI to help shape the future of technology."
In Red Oak, Google has disclosed plans to invest around $600 million in the data center and generate 30 full-time jobs. The facility is currently under construction.
The Dallas cloud region is part of the company’s 40-region network delivering services to organizations across the globe.
The company also announced Aug. 15 power purchase agreements with Elawan Energy, Engie North America, Grupo Cobra and X-ELIO to tap into solar energy in Texas. The agreements are anticipated to provide 375 megawatts of carbon-free energy capacity and support the organization’s operations in the state.
Google has had a presence in Texas since 2007 and has offices in Dallas, Austin and Houston. The company said it helped generate $47 billion in economic activity for businesses, nonprofits and creators across the state last year.
Google has become a major economic force in the Lone Star State, but it has faced some challenges. In Austin, where Google employs about 2,000, the company still hasn't moved into a new 35-story downtown tower it entirely leased before the pandemic.
Google has also faced off multiple times in legal disputes with conservative Texas Attorney General Ken Paxton.
Another Alphabet subsidiary, Verily Life Sciences LLC, recently announced plans to relocate its headquarters to Dallas. The life sciences company will expand its currently occupied space at Cypress Waters and aims to move its head office to Dallas by the end of the third quarter. About 60 staff members will work in the Dallas office, and Verily anticipates doubling this headcount in the next 18 months, Dallas-based CEO Stephen Gillett previously said.