In response to Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google’s announcement of a $40 billion investment in Texas, Elon Musk, the CEO of Tesla Inc. (NASDAQ:TSLA), called the spending on artificial intelligence computation “mind-blowing” on Friday.
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Google’s Texas Data Center Expansion
According to Sundar Pichai, the company plans to invest $40 billion in Texas through 2027 to develop cloud and artificial intelligence infrastructure.
New data centers in Armstrong and Haskell Counties are part of this investment.
Energy And Workforce Initiatives
The tech giant pledged to finance initiatives that would more than double Texas’ anticipated electrician pipeline.
Pichai also stated that the investment will support thousands of new jobs and “strengthen energy resilience and abundance.”
Meanwhile, the International Energy Agency's World Energy Outlook 2025 report also highlights that AI data centers are driving a surge in electricity demand. The report notes that natural gas is once again becoming a key energy source as renewable energy projects struggle to keep up with growing infrastructure needs.
Musk Sees Further Growth Ahead
In his social media post, Musk added, “But still many orders of magnitude to go,” implying that spending on AI computing will continue to rise above its current levels.
Musk’s own xAI is part of an investor consortium with Nvidia Corp. (NASDAQ:NVDA), Microsoft Corp. (NASDAQ:MSFT) and BlackRock Inc. (NYSE:BLK) acquiring a separate $40 billion Texas data center.
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