Alphabet plans to fund $3.3bn in South Carolina to make two new data centers, CEO Sundar Pichai said when the Google parent and its foes subsidize heavily in infrastructure supporting the development of AI applications.
Massive Investment in AI Infrastructure
Alphabet, the parent company of Google, announced plans to invest $3.3 billion in South Carolina to build two new data centers as part of its strategy to support the growing development of AI applications.
This investment underscores the company’s commitment to expanding infrastructure crucial to AI growth, following similar moves by its competitors.
Two New Data Centers in South Carolina
The tech giant will establish new data center campuses in Dorchester County and expand its existing campus in Berkeley County, according to a statement released by the South Carolina governor’s office on Thursday.
The new Dorchester County facilities, located at the Pine Hill Business Campus in Ridgeville and Winding Woods Commerce Park in St. George, represent a $2 billion investment and are expected to create 200 new operational jobs. Additionally, Alphabet will allocate $1.3 billion to expand the Berkeley County data center campus.
Growing Capital Expenditure for AI Expansion
Alphabet’s capital expenditure reflects its growing focus on building infrastructure to support AI innovation.
The company reported capital expenditures of $13 billion in the second quarter of 2024 and has indicated that capital spending for the rest of the year will remain at or exceed $12 billion per quarter.
Competitors Also Ramp Up AI Investments
Alphabet’s announcement comes in the wake of Microsoft partnering with BlackRock and MGX, an Abu Dhabi-backed investment firm, to launch a fund exceeding $30 billion to support AI infrastructure, data centers, and energy projects.
The race to build AI-supporting infrastructure is intensifying as tech giants seek to position themselves at the forefront of the rapidly evolving AI landscape.