DALLAS (NewsNation) — Google is investing $40 billion to build three massive AI data centers in Texas — the largest investment in the state’s history.
But what does the artificial intelligence push mean for the rest of the country?
On Friday, Gov. Greg Abbott and Google CEO Sundar Pichai announced plans for the centers, which will power AI and cloud operations nationwide. The facilities are expected to create hundreds of jobs and shift critical infrastructure away from Silicon Valley.
“Texas is the epicenter of AI development, where companies can pair innovation with expanding energy,” Abbott said in a statement. “We must ensure that America remains at the forefront of the AI revolution, and Texas is the place where that can happen.”
Google is not alone. The announcement follows news that Anthropic, the startup behind Claude AI, plans to invest $50 billion in data centers in New York and Texas, with operations going online next year.
AI could spike electric costs: Analysts
Analysts warn AI could significantly raise electricity costs. Americans are already seeing higher bills as data centers become a growing strain on the power grid.
The Department of Energy predicts AI could double nationwide electricity demand by 2030, and Texas is now the testing ground.
ERCOT, the state’s grid operator, has the authority to cut power to large users if supply runs low.
Google says it will add solar panels and battery storage to ease grid stress, but experts caution this is just the beginning of a national challenge over energy and AI.
“The question is who pays for all of that infrastructure, those grid upgrades,” said Benjamin Lee, an engineering professor at the University of Pennsylvania. “There is a risk that the data center operators are benefiting disproportionately from those energy investments, but then those costs are being distributed to the local ratepayers, the local consumers in those communities.”
What starts in Texas could shape how the U.S. powers artificial intelligence for the next decade.