The future of data

Google's $40B investment in Texas data centers includes energy infrastructure

Google is investing in Texas. Courtesy of Google

Google is investing a huge chunk of money in Texas: According to a release, the company will invest $40 billion on cloud and artificial intelligence (AI) infrastructure, with the development of new data centers in Armstrong and Haskell counties.

The company announced its intentions at a meeting on November 14 attended by federal, state, and local leaders including Gov. Greg Abbott who called it "a Texas-sized investment."

Google will open two new data center campuses in Haskell County and a data center campus in Armstrong County.

Additionally, the first building at the company’s Red Oak campus in Ellis County is now operational. Google is continuing to invest in its existing Midlothian campus and Dallas cloud region, which are part of the company’s global network of 42 cloud regions that deliver high-performance, low-latency services that businesses and organizations use to build and scale their own AI-powered solutions.

Energy demands

Google is committed to responsibly growing its infrastructure by bringing new energy resources onto the grid, paying for costs associated with its operations, and supporting community energy efficiency initiatives.

One of the new Haskell data centers will be co-located with — or built directly alongside — a new solar and battery energy storage plant, creating the first industrial park to be developed through Google’s partnership with Intersect and TPG Rise Climate announced last year.

Google has contracted to add more than 6,200 megawatts (MW) of net new energy generation and capacity to the Texas electricity grid through power purchase agreements (PPAs) with energy developers such as AES Corporation, Enel North America, Intersect, Clearway, ENGIE, SB Energy, Ørsted, and X-Elio.

Water demands

Google’s three new facilities in Armstrong and Haskell counties will use air-cooling technology, limiting water use to site operations like kitchens. The company is also contributing $2.6 million to help Texas Water Trade create and enhance up to 1,000 acres of wetlands along the Trinity-San Jacinto Estuary. Google is also sponsoring a regenerative agriculture program with Indigo Ag in the Dallas-Fort Worth area and an irrigation efficiency project with N-Drip in the Texas High Plains.

In addition to the data centers, Google is committing $7 million in grants to support AI-related initiatives in healthcare, energy, and education across the state. This includes helping CareMessage enhance rural healthcare access; enabling the University of Texas at Austin and Texas Tech University to address energy challenges that will arise with AI, and expanding AI training for Texas educators and students through support to Houston City College.

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This article originally appeared on CultureMap.com.

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A View From HETI

The startup says its energy-as-a-service offering lowers power costs, boosts power reliability and decreases emissions. Photo courtesy Kanin Energy

Kanin Energy, a member of the Greentown Labs climatech and energy incubator in Houston, recently raised as much as $100 million in capital to grow its energy-as-a-service platform.

S2G Investments led a round of up to $50 million, and the Canada Growth Fund chipped in an additional $50 million. The money will primarily support Kanin’s development and operation of waste-heat-to-power projects.

Kanin—founded in 2020 in Calgary, Alberta, Canada—builds and runs onsite power assets for large-scale energy users. The startup says its energy-as-a-service offering lowers power costs, boosts power reliability and decreases emissions.

The company operates a waste-heat-to-power project at Ohio’s University of Dayton. The project supplies zero-emission electricity.

Kanin has a pipeline of projects totaling about 50 megawatts of capacity. This includes a waste-heat-to-power plant at the Phillips 66 Mewbourn gas-processing plant near Greeley, Colorado.

“Kanin was built on the belief that industrial facilities already hold the solution to their own energy challenges, they just need the right partner to execute,” Janice Tran, CEO of Kanin, who is based in Houston, said in a release. “At a time when power costs continue to rise, [our] solutions are an important tool for our industrial customers to manage their costs, operations, and emissions.”

Marisa Sweeney, principal at S2G, says waste heat is a largely underused resource for lowering power costs, alleviating grid congestion and improving power reliability.

The waste-heat-to-power process captures thermal energy from industrial activities and converts it to electricity. This happens without using extra fuel or generating more emissions.

Kanin says up to 58 percent of energy consumed by industrial processes is lost as waste heat. This heat winds up in the atmosphere at thousands of facilities in North America, including oil-and-gas operations, cement plants, and steel mills, the startup says.

Kanin was founded in 2020 in Calgary, Alberta, Canada. It opened offices at Greentown Labs Houston in July 2022.

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