Key Takeaways
- Google announces a massive $40 billion investment in Texas for Cloud and AI infrastructure.
- The plan includes new data centers in Armstrong and Haskell Counties, creating thousands of jobs.
- Elon Musk called the spending on AI “mind-blowing,” prompting a confident reply from Sundar Pichai.
- Both companies are also exploring the future of orbital data centers in space.
Google CEO Sundar Pichai has announced a historic $40 billion investment in Texas to expand the company’s Cloud and Artificial Intelligence (AI) infrastructure through 2027. This move has sparked a public exchange with Tesla CEO Elon Musk, who expressed astonishment at the scale of AI spending.
Massive Texas Expansion
Google’s investment will establish new data centers in Armstrong and Haskell Counties, significantly boosting its computational power and supporting thousands of new jobs. The company has been present in Texas for 15 years and also plans to fund efforts to double the state’s pipeline of new electricians.
“Today, we’re announcing a new $40B investment in Texas through 2027 to build Cloud and AI infrastructure and support thousands of new jobs,” Pichai stated on social media. He added that this “includes new data centers in Armstrong and Haskell Counties and a major investment to strengthen energy resilience and abundance.”
Elon Musk’s ‘Mind-Blowing’ Reaction
The announcement drew an immediate response from Elon Musk, who has headquartered several of his companies, including Tesla and SpaceX, in Texas. Known for his candid commentary, Musk highlighted the frantic pace of AI investment.
Responding to the news, Musk stated, “It’s mind-blowing how much money is being spent on AI compute so fast! But still many orders of magnitude to go…”
Pichai’s Confident Reply
Sundar Pichai promptly replied with a touch of humour, pointing to Texas’s natural resources as ideal for such large-scale projects.
Pichai wrote, “Between abundant sand, plenty of sun and space (literally) to put it in, we can do it :)”
Google has promised that the $40 billion initiative will prioritize responsible growth, including incorporating clean energy into the Texas grid to power the new data centers.
The Future: AI Data Centers in Space
Alongside ground-based expansion, there is a growing ambition to move data centers into space. Companies like Google, with its , and Elon Musk’s SpaceX are exploring orbital data centers.
Space offers significant advantages, including unlimited solar energy, natural passive cooling from the vacuum, and virtually limitless physical space for expansion. Google’s Project Suncatcher aims to test machine learning hardware in orbit using solar-powered satellites, while Musk is looking to build Starlink-based AI supercomputers.



