Google Invests $4B In New U.S. Data Center to Fuel AI’s ‘Next Generation,’ President Says

‘Google is investing in the next generation of AI innovation in Arkansas and across the country,’ says Google President Ruth Porat regarding its new $4 billion data center investment.

Google is pouring $4 billion into building its first data center campus in Arkansas to power Google Cloud’s bullish AI infrastructure and cloud ambitions.

“Google is investing in the next generation of AI innovation in Arkansas and across the country,” said Ruth Porat, president and Chief Investment Officer of Google, in a statement. “We see AI and the energy powering it to be the innovations that will define this century. The upside of AI cannot be unlocked without the energy it requires.”

The Mountain View, Calif.-based tech giant is also launching a $25 million Energy Impact Fund to help scale efficiency and affordability initiatives for residents located in West Memphis where the new data center will be built.

[Related: Google Cloud Layoffs Hit Employees As Sales Reach Record Highs]

“Google is building energy capacity that protects affordability for ratepayers and creates jobs that will drive the AI-powered economy,” said Google’s Porat.

Alphabet CEO Sundar Pichai recently said that thanks to strong sales and customer demand for its AI and cloud computing, the company will invest roughly $85 billion in CapEx this year.

“Cloud had strong growth in revenues, backlog and profitability. Its annual revenue run rate is now more than $50 billion,” said Pichai during the company’s second-quarter 2025 financial earnings report in August. “With this strong and growing demand for our cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead.”

$4 Billion Through 2027; Solar Project For Energy

Google said its $4 billion new data center will be built on more than 1,000 acres in West Memphis through 2027.

In addition, Google is partnering with electricity provider Entergy to build a new 600-megawatt solar project in the area. This will be backed by a 350-megawatt storage system to be located in the region.

Google said it will cover the full energy costs associated with powering the data center campus, which will contribute over $1.1 billion in net benefits over the life of the contract and help to reduce electricity rates for all Entergy Arkansas-based customers.

Google is also offering free access to Google AI courses and certifications for all residents, including for several local colleges.

"Google's multibillion-dollar investment in West Memphis is one of the largest investments ever in our state," said Gov. Sarah Huckabee Sanders.

Google And Google Cloud Earnings

Google parent company Alphabet reported $96 billion in total revenue for its second quarter of 2025, representing an increase of 14 percent year over year.

Google Cloud, which is at the center of Alphabet’s AI, data center and cloud businesses, generated $13.6 billion in sales, up 32 percent year over year.

Google Cloud generated a record $2.8 billion in operating income for second-quarter 2025, up 133 percent from $1.2 billion year over year.