Google to spend $1.5 billion on Alabama data center expansion

Alphabet’s Google announced a $1.5 billion expansion of its Alabama data center operations, underscoring continued heavy capex tied to AI and cloud infrastructure. The project will expand the Jackson County campus, which has been operational since 2019, and follows more than $2 billion already invested there since 2018. Google expects the latest phase to create more than 1,000 contract jobs during construction and add over 300 MW of new generation capacity in the Tennessee Valley region. The company also said it will cover 100% of the power used at the expanded site and directly related infrastructure costs, addressing concerns about data centers’ impact on electricity bills. The announcement included $2.55 million in community commitments. Shares of Alphabet’s Class A stock rose modestly after the news, reinforcing investor focus on whether aggressive AI infrastructure spending can support longer-term growth while pressure on capex remains a key earnings topic ahead of Q2 results on July 28, 2026.