Aiming to expand capacity for artificial intelligence initiatives, Alphabet’s Google on Friday said that it would invest $40 billion in three new data centers in Texas, and be made through 2027.
The new data centers announcements by Google is an initiative to intensify its competition among AI and cloud service providers who are building their infrastructure capable of supporting advanced AI models.
Google’s competitors OpenAI, Microsoft , Meta Platforms, and Amazon are also spending billions in new AI-focused data centers.
Earlier on Wednesday, American AI startup company, Anthropic said that it will invest $50 billion in building data centers in the United States’ Texas and New York. The latest facilities will be set up with infrastructure provider Fluidstack.
In January this year, US President Donald Trump asked his administration to come up with an AI Action Plan, which would help the US become the world capital in AI.
What Is Google Planning?
According to the new announcement, Google is planning to set up its new data centers at Texas Panhandle’s Armstrong County and the two other would be set up in West Texas near Abilene at Haskell County.
Alphabet CEO Sundar Pichai in a statement said that the investment would create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas.
Apart from this, Google will also invest in its existing Midlothian campus and Dallas cloud region, which are part of its global network of 42 cloud regions.
Welcoming the move, Texas Governor Greg Abbott said that Google’s $40 billion investment would make Texas Google’s largest investment in any state in the country.
What Others Announced?
BlackRock, Microsoft and Nvidia led investor group is all set to buy US-based Aligned Data Centers, having nearly 80 facilities, for $40 billion.
In Partnership with Broadcom, OpenAI will produce its first in-house artificial intelligence processors.
Tech major, AMD has agreed to supply artificial intelligence chips to OpenAI in a multi-year deal. It would allow OpenAI an option to buy up to roughly 10 per cent of AMD.
Also, Nvidia is all set to invest up to $100 billion in OpenAI and have agreed to supply OpenAI with data center chips. Nvidia is even going to invest $5 billion in Intel, and has signed a $6.3 billion initial order with CoreWeave.
Google and Meta Platforms have struck a six-year cloud computing deal for over $10 billion.
Microsoft and Nebius Group have signed a $17.4 billion deal where Nebius Group, opens new tab will provide Microsoft with GPU infrastructure capacity.
Another tech firm Oracle has reportedly signed one of the biggest cloud deals ever with OpenAI, and they would sell $300 billion in computing power for about five years.
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