Google Boosts AI Race with $9B South Carolina Data Center Investment
The tech giant's multi-billion dollar expansion is part of an $85 billion capital expenditure plan for 2025, signaling a deeper push into AI and cloud computing.
Alphabet's Google is set to invest $9 billion in South Carolina through 2027 to expand its data center infrastructure, a move aimed at bolstering its artificial intelligence and cloud capabilities. This investment is part of a broader strategy that includes an increased capital expenditure plan for 2025, now estimated at approximately $85 billion, up from an earlier projection of $75 billion.
The South Carolina investment will focus on expanding Google's existing campus in Berkeley County and completing two new data centers in Dorchester County. The expansion solidifies the state's role as a key hub for the nation's digital infrastructure and is expected to create new jobs in the tech and energy sectors. In a related move, Google.org, the company's philanthropic arm, is providing a grant to the Electrical Training Alliance to incorporate AI tools into apprenticeship programs, further developing the local workforce.
This significant capital outlay highlights the escalating competition in the AI and cloud computing markets, where Google is contending with rivals like Microsoft and Amazon. The company's revised $85 billion capex plan for 2025, announced during its Q2 2025 earnings call, reflects an accelerated investment in the technical infrastructure required to meet the growing demand for AI services. According to , the majority of this capital will be directed towards servers and data centers, with further increases in spending anticipated in 2026.
Analysts see this move as a clear indication of Google's commitment to maintaining a leadership position in the AI race. The is a critical component of this strategy, providing the necessary infrastructure to support the company's ambitious AI development and deployment goals. As the demand for AI and cloud services continues to surge, will be a key factor in its ability to compete and innovate in this rapidly evolving landscape.