Google is preparing a $40 billion expansion of its Texas operations, unveiling plans for three new data centers as the race to build AI-ready infrastructure intensifies, Bloomberg reports.

The investment, scheduled to roll out through 2027, places the tech giant alongside OpenAI, Anthropic and other major players who are pouring money into the state.

The new facilities will be split between Armstrong County in the Panhandle and two sites in Haskell County near Abilene. One of the Haskell centers will sit next to a new solar-plus-battery project, designed to soften the strain on Texas’s already stressed electric grid.

“This investment will create thousands of jobs, provide skills training to college students and electrical apprentices, and accelerate energy affordability initiatives throughout Texas,” Alphabet Chief Executive Sundar Pichai said at an event near Dallas, where Google already runs two data-center campuses.

Texas has become a leading destination for massive computing projects, fueled by the explosion of AI workloads and the state’s combination of abundant land and relatively low-cost power.

Anthropic this week revealed a $50 billion nationwide data-center buildout that includes Texas and New York. Meanwhile, OpenAI, along with partners Oracle and SoftBank, has chosen Abilene for the first site in its Stargate venture and has signaled that more Texas locations are likely.

Other tech heavyweights are deepening their footprints as well. Meta is constructing a data center on the scale of a gigawatt—enough electricity to supply roughly 750,000 homes—while Microsoft recently agreed to spend nearly $10 billion over five years for computing capacity in the state.

Fermi Inc., a real-estate investment trust co-founded by former Texas Governor and U.S. Energy Secretary Rick Perry, is plotting four nuclear reactors to power a private data-center complex.

For Google, multibillion-dollar infrastructure commitments are hardly unusual. The company is on track to exceed $90 billion in capital spending this year, largely aimed at servers, custom chips, and new facilities needed to support its AI and cloud push.

The Texas plan is only the latest in a string of major global commitments. In recent weeks, Google has unveiled a $15 billion AI infrastructure investment in southern India, a $6.4 billion pledge to boost computing operations in Germany, and more than $6.5 billion earmarked for expanded AI development in the UK.

Together, the investments highlight Alphabet’s drive to scale its global infrastructure rapidly and reduce its dependence on traditional search advertising—while navigating the challenge of proving to investors that its massive AI-focused spending will generate meaningful returns.