Google commits to $25 billion investment in AI infrastructure and data centers

Google Alphabet has announced plans to establish more data centers and artificial intelligence infrastructure in the U.S. with a $25 billion investment. The company said the initiative aims to advance the AI sector in states nationwide over the next two years.

The tech firm also plans to inject $3 billion into advancing two hydropower plants in Pennsylvania. Google revealed that modernizing the project will help meet the growing demand for power from data centers and AI in the state.

The company also acknowledged that the initiative complements its previous deal with Brookfield Asset Management to purchase 3,000 megawatts of hydroelectric power across the U.S.

Google plans to spend $75B on data centers in 2025

The Trump Effect:

"Google will invest $25 billion in data center and artificial intelligence infrastructure over the next two years in states across the biggest electric grid in the U.S., the technology company said Tuesday."https://t.co/DBHAMcZ875

— Karoline Leavitt (@PressSec) July 15, 2025

Google Alphabet’s investment also aligns with its plans to spend roughly $75 billion on establishing data centers to support AI, which its CEO, Andrew Pichai, reiterated in April at the Google Cloud Next 2025 conference. He acknowledged that the company is prepared to build AI infrastructure to support Alphabet’s core services. 

Pichai also mentioned that the firm established 11 data centers in 2024 worldwide, including South Carolina, Missouri, and Indiana. He also disclosed that Google will announce plans for seven new subsea cable projects, but didn’t say when.

“We’ll continue to invest in our Cloud business to ensure we can address the increase in customer demand. The opportunity with AI is as big as it gets.”

-Andrew Pichai, CEO of Google.

Pichai argued that Google’s growing interest in establishing new capacity for AI is because the space provides opportunities to propel AI use cases and keep driving its cost down. He said the company sees growth opportunities in the space, and that’s why it is investing to meet that moment.

The tech firm first mentioned the initiative during its quarterly earnings call in February 2025, which surpassed previous estimates of $58 billion by Wall Street. At the time, President Donald Trump’s tariffs had caused a global trade war, which affected the data center and AI sector, but Google Cloud’s VP and GM, Sachin Gupta, said the demand for AI required significant investment.

Google Cloud’s revenue inched up 30% to roughly $12 billion for Q1, surpassing LSEG’s expectations at 32.2% to reach $12.16 billion. Alphabet’s CFO, Anat Ashkenazi, stated that the firm’s operating income aligned with its deployment of new capacity. He also expects Google Cloud’s revenue to increase depending on the establishment of new capacity during the year.

Trump meets tech and energy executives to discuss U.S. position in AI

The future of energy & AI kicks off tomorrow in Pittsburgh. I’m thrilled to host @POTUS in PA as we launch our Energy & Innovation Summit & announce $70 billion in investment & new jobs for our great Commonwealth. Great to be on America’s Newsroom this morning on @FoxNews. pic.twitter.com/3c0wLo8BUT

— Senator Dave McCormick (@SenMcCormickPA) July 14, 2025

Google’s announcement also comes as Trump and other executives from the largest U.S. tech and energy firms meet for a summit Tuesday in Pittsburgh. The President and Pennsylvania Senator David McCormick are expected to announce a $70B energy investment in the U.S. at the Energy and Innovation Summit at Carnegie Mellon University.

In the coming weeks, the U.S. is allegedly working towards easing access for power-generating projects to connect to the grid. The country also plans to provide federal land for companies to establish data centers to expand AI technology in the U.S. 

The state wants to create a nationwide Clean Water Act permit to ease the permitting process for expanding data centers. The initiative aligns with Trump’s directive in January for his administration to establish an AI Action Plan to make the U.S. the global capital in the AI space. Trump’s order is due by July 23, the same day the White House considers labeling it as “AI Action Day” to show its commitment to expanding the space.

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