Alphabet’s (GOOGL) Google will be investing $9 billion in Virginia through 2026 to build cloud and artificial intelligence (AI) infrastructure. Big techs are significantly investing in U.S. data centers to capitalize on the AI boom. Additionally, the Trump administration is encouraging tech giants to boost their domestic investments to become self-reliant and create jobs in the country.
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In July, Google announced a $10 billion increase to its capital spending plan for 2025 to $85 billion, citing solid and growing demand for its cloud products and services.
Google to Invest $9B in Virginia Data Centers
Google’s $9 billion investment in Virginia will mainly be directed toward building a new data center in Chesterfield County. The company will also be expanding existing campuses in Loudoun and Prince William counties.
The search engine giant stated that it is working with local partners on power solutions, including efficiency programs, given the growing demand for energy capacity to support data centers. Citing a company spokesperson, Bloomberg stated that Dominion Energy (D) will be Google’s power partner.
Interestingly, data centers in the U.S. have primarily been concentrated in northern Virginia, also known as “Data Center Alley,” since the initial cloud buildout in the early 2000s.
Earlier this month, Google committed $1 billion to AI education and job training programs, as well as research, in the U.S. Under this investment program, all Virginia-based college students will have access to the Google AI Pro plan and AI training for a year.
Is GOOGL Stock a Buy, Sell, or Hold?
Given robust AI tailwinds, Wall Street has a Strong Buy consensus rating on Alphabet stock based on 27 Buys and nine Holds. The average GOOGL stock price target of $217.25 indicates 4.7% upside potential from current levels. GOOGL stock has risen about 10% year-to-date.
