Google plans to invest $1 billion in Texas this year through its data center campuses in Midlothian and Red Oak. The investment is set to help meet the company’s growing demand for artificial intelligence, Google Cloud and its products like its search engine, Google Maps and Workspace.
By the time 2024 ends, Google’s to-date investment in the Lone Star State will be brought up to $2.7 billion. However, the company said it was unable to disclose exactly how much money its projects in Midlothian and Red Oak will each gain.
Though Google does not yet have an exact estimate, the new investment will likely generate hundreds of full-time jobs and thousands of temporary construction jobs, Sen. Ted Cruz, R-Texas, said at Google’s announcement Thursday.
More jobs and Google’s growing presence in Midlothian, a city with a population of over 38,000, is a victory for Mayor Justin Coffman.
“We are honored to be part of today’s announcement,” Coffman said in an emailed statement to The Dallas Morning News. “Google’s involvement in Texas is a great economic stimulant. Additionally, we appreciate Google’s support of the schools and library in our own community.”
Google launched its Google Cloud region in Dallas in the summer of 2022 at a 400-acre campus in Midlothian. It’s still one of Google’s largest projects in the United States. Google has nine other Google Cloud regions across the country in cities like Los Angeles and Las Vegas.
The California-based tech giant also made a $330 million investment in Red Oak last year when it announced plans to build a new data center in the city. By the time the project is fully finished, it will cost the company more than $600 million.
The move to invest another $1 billion in Texas underlines the company’s commitment to the region, said Yolande Piazza, vice president of financial services for Google Cloud.
“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,” Piazza 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 recent years, Texas has become a powerhouse for data centers. The state has more than 300 with more on the way like Denver-based Prime Data Centers’ two plotted campuses in Garland and west of Fort Worth. Google has two data centers in Texas but dozens of others across the U.S.
Some residents have voiced concerns over whether the state’s independent grid, managed by the Electric Reliability Council of Texas, can balance strain between citizens and companies.
“We work absolutely hand in hand with the electrical utility companies and that partnership is really important,” Piazza said. “We work with them on when we see pressure on the grid as a whole and how can we manage our output. So it’s definitely a collaboration and we’re very aware that we need to be as responsible as everyone else.”
Despite the potential impact on the grid, state representatives are happy to see Texas gain yet another corporate win. Google’s announcement comes shortly after other giants like finance company TIAA, Elon Musk’s Space X and social media platform X and more look to join Google in embedding its presence deeper in Texas.
“We’re greedy. We want more jobs,” Cruz said. “We want more investments. Because the state of Texas cares about jobs and economic liberty and we’re proud to welcome you [Google] here.”
