Google said on Friday it was investing $40 billion in Texas by 2027 to build new cloud computing and artificial intelligence (AI) infrastructure, the latest announcement in a series of technology investments in the American state, which is attractive for such projects.
These billions will be used to finance a new data center in the northern part of the state, Google explained in a press release, and will strengthen its “more than 15 years of presence in Texas.” “Our latest investment in Texas aims not only to support the state’s workforce and infrastructure, but also to ensure that the United States maintains the technological backbone necessary to remain at the forefront of AI globally”added the American tech giant.
Texas attracts all the tech giants despite network problems
Thanks to abundant access to electricity and favorable regulations, Texas has become attractive for the development of highly energy-intensive data centers. OpenAI, the creator of ChatGPT, has made one of the most ambitious commitments this year, planning to install a new data center in Abilene, in the heart of Texas, as part of the giant $500 billion “Stargate” project, with a consortium including Softbank, Oracle, Microsoft and Nvidia. Meta (Facebook, Instagram, WhatsApp) has also invested billions in Texas. Tesla and Oracle moved their headquarters there. South Korea’s Samsung should build a semiconductor factory there, worth 17 billion dollars
But energy demands from these technology players are reigniting concerns about the stability of the power grid, especially in light of the 2021 winter storm that caused widespread power outages.
Google recalled on Friday that it had created a $30 million fund, the Energy Impact Fund, to support energy initiatives in Texas.
And the company is committed to adding new capacity to the Texas power grid, covering costs associated with its activities.
