- Google unveiled a new $9B data center investment in Oklahoma
- The reason unsurprisingly boils down to more power and the need for cheaper build costs
- The hyperscaler also plans to use the funds for electrical workforce development
Google is cranking up its domestic data center buildout, with plans to spend over $9 billion to expand AI and cloud infrastructure in Oklahoma.
The investment will fuel the construction of a new data center campus in the city of Stillwater, a project that’s been in the works for over a year. The city’s government confirmed in March that Google acquired the land for the deal, though details about the facility itself are still unclear. The hyperscaler will also use the funds to expand its existing campus in Pryor, which has been in operation since 2011.
Google follows the footsteps of companies like Cerebras Systems, CoreWeave and DAMAC Digital that have targeted the state as a prime spot for cloud activity. “Oklahoma, once a quiet data center market, is now attracting major players,” said Futura Energy Group’s Oliver Dennis on LinkedIn.
The reason, unsurprisingly, boils down to the need for more power. Data center builders are rushing to capitalize on the AI gold rush, with Synergy Research Group predicting 130 to 140 new hyperscaler facilities will come online annually over the next few years.
But cloud providers don’t want to break the bank on energy and build costs.
J.Gold Associates Founder Jack Gold said he assumed Google’s decision was based partly on power availability as well as “some incentives from the various government agencies.” State governor Kevin Stitt has touted Oklahoma has “one of the most affordable and reliable grids in the country.”
“It's also probably less expensive to build in Oklahoma than in many other parts of the country, and certainly less than in the Bay Area,” Gold said.
Google’s $9 billion plan further includes a workforce development initiative to increase the number of electrical workers in the state “by 135%.” A highly trained workforce is a critical piece of the puzzle for not just data center rollouts but also AI adoption.
While Google pours more money into data center expansion, competitor Microsoft seems to be taking a slight step back. The latter announced in April plans to “slow or pause” some of its campus construction, including a $1 billion project earmarked for Ohio. Executives, however, have reiterated Microsoft isn’t pulling back so much as moving projects to follow demand.