Alphabet Inc's Google said it will inject $1.5 billion into an expansion of its data center operations in Jackson County, Alabama, with spending scheduled across 2026 and 2027. The company said the work will extend the footprint of the campus it operates on the former TVA Widows Creek coal plant site, which has been active since 2019.
Google noted that, since first arriving in the area in 2018, its total investment in Jackson County has surpassed $2 billion. The new phase is expected to bring more than 1,000 contract workers to the region during the construction period, according to the company.
The announcement came as Alphabet shares ticked higher in intraday trading - the stock gained 0.8% in Tuesday's late morning trade - and Class A shares (GOOGL) were reported trading at $372.32, up $2.98, with a market capitalization listed at $4.51 trillion. Class C shares (GOOG) were tracking closely, reported at $369.43 and up roughly 0.63%.
Google positioned the expansion amid heightened public debate over the power demands of AI-driven data centers. A Reuters/Ipsos poll cited in the company's announcement said 77% of Americans worry such centers will increase their electricity bills, and Reuters reported that dozens of off-grid power plants serving data centers across the U.S. are being fast-tracked with limited public scrutiny.
In response to those energy concerns, Google said it has aligned with the White House Ratepayer Protection Pledge and will cover 100% of the power consumed at the expanded site as well as all infrastructure costs directly driven by its operations. As part of its regional energy commitments, the company has contracted to bring more than 300 MW of new generation capacity to the Tennessee Valley region.
Google also pointed to a 2025 partnership with Kairos Power and the Tennessee Valley Authority that is set to provide up to 50 MW of advanced nuclear power to Google data centers in Alabama and Tennessee.
Beyond energy guarantees, Google announced $2.55 million in community investments tied to the expansion. The company said it will establish a $2 million Energy Impact Fund in partnership with TVA and the Community Action Agency of Northeast Alabama to finance weatherization and energy efficiency upgrades for local schools and income-qualified households. A separate $550,000 commitment will fund STEM kits for students in grades 4 through 8 across the Jackson County School District, extending robotics programs that Google says have already engaged more than 1,500 local students.
"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," said Thomas Gamble, Google's Jackson County site lead.
The corporate update also referenced Alphabet's recent financial momentum. Google pointed to first-quarter 2026 results that showed earnings per share of $5.11 versus a consensus of $2.62, a beat the company characterized as a 95% outperformance on EPS, on revenue of $109.9 billion. That quarter's results triggered a roughly 10% post-earnings rally in the stock, the company noted.
Investors will next watch Alphabet's tentative July 28, 2026 report date for second-quarter results. Analysts are forecasting earnings per share of $2.88 on revenue of $116.8 billion, and the company acknowledged that commentary on capital expenditure for data center buildout will be a focal point for market participants tracking how aggressively it expands AI infrastructure.
Alongside the direct project spending, staffing during construction, energy deals and community grants, the company reiterated that the expansion sits within an environment of public scrutiny about data center power usage and permitting. The firm said its commitments on power coverage and infrastructure costs are intended to address stakeholder concerns while the Energy Impact Fund and STEM investments are designed to deliver local benefits tied to the project.
The company also reiterated previously stated figures related to its local presence and future energy sourcing, and provided investors with the most recent trading metrics for its Class A and Class C shares included above.
Separately, the company discussed operational details and partnerships tied to the Tennessee Valley region and flagged the 2025 arrangement for advanced nuclear capacity with Kairos Power and TVA as part of the broader supply plan for its regional data centers. Google said the combination of contracted generation capacity and its pledge to cover on-site power should help insulate local ratepayers from cost impacts it directly causes.
This announcement combines capital deployment in physical infrastructure with targeted community and energy commitments that the company said are intended to deliver benefits to both the regional grid and local residents while the buildout proceeds.