Google to spend $1.5 billion on Alabama data center expansion

The expansion will build out Google's existing campus in Jackson County, which sits on the former TVA Widows Creek coal plant site and has been operational since 2019. Google said it has now invested more than $2 billion in Jackson County since first arriving in 2018, and the latest phase is expected to bring more than 1,000 contract workers to the region during construction.

The announcement arrives at a politically charged moment for the data center industry. A Reuters/Ipsos poll found that 77% of Americans worry AI-driven data centers will raise their electricity bills, and Reuters reported Tuesday that dozens of off-grid power plants serving data centers across the U.S. are being fast-tracked with minimal public scrutiny. Against that backdrop, Google aligned with the White House Ratepayer Protection Pledge. The company said it will cover 100% of the power it uses at the expanded site and all infrastructure costs directly driven by its operations.

Beyond the power assurance, Google unveiled $2.55 million in community commitments. A $2 million Energy Impact Fund, established in partnership with TVA and the Community Action Agency of Northeast Alabama, will finance weatherization and energy efficiency upgrades for local schools and income-qualified households. A separate $550,000 pledge will fund STEM kits for children in grades 4 through 8 across the Jackson County School District, extending robotics programs that have already engaged more than 1,500 local students.

Thomas Gamble, Google's Jackson County site lead, framed the broader ambition: "By investing heavily in the students, small businesses, and local organizations that form the backbone of Jackson County, Google aims to build a foundation of opportunity that will benefit the region long after construction is complete."

On the energy supply side, Google has contracted to bring more than 300 MW of new generation capacity to the Tennessee Valley region. A 2025 partnership with Kairos Power and TVA is set to supply up to 50 MW of advanced nuclear power to Google data centers in Alabama and Tennessee.

Alphabet Class A shares (GOOGL) are currently trading at $372.32, up $2.98, with a market capitalization of $4.51 trillion, according to Investing.com data. The stock has mounted a sharp recovery over the past year, more than doubling from its 52-week low of $162.00, though it remains below its 52-week high of $408.61. Class C shares (GOOG) are tracking closely, up roughly 0.63% at $369.43.

The broader investment case got a significant boost from Alphabet's first-quarter 2026 earnings, which delivered a 95% beat on earnings per share ($5.11 versus a consensus of $2.62) on revenue of $109.9 billion, triggering a 10% post-earnings rally. The next major financial test comes on July 28, 2026, when Alphabet is tentatively scheduled to report Q2 results. Analysts are forecasting EPS of $2.88 on revenue of $116.8 billion, and commentary on capital expenditure for data center buildout will be a focal point for investors watching how aggressively the company scales its AI infrastructure commitments.

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