Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) CEO Sundar Pichai has announced a $2.3 billion investment in Ohio's data centers, further solidifying the state's position as a burgeoning tech hub.
What Happened: Pichai took to his X account to reveal the investment, which is aimed at expanding the company's technical infrastructure across Ohio. This move is expected to bolster Ohio's status as a growing technology hub.
"We're investing $2.3B in our Ohio data centers to expand our technical infrastructure across the state and support Ohio as a growing technology hub," Pichai wrote on X.
We're investing $2.3B in our Ohio data centers to expand our technical infrastructure across the state and support Ohio as a growing technology hub. pic.twitter.com/GYjjAqCcR9
— Sundar Pichai (@sundarpichai) June 19, 2024
The investment will be directed towards the continued innovation of Google Cloud services and AI, as reported by NBC4i. This announcement brings Google's total investments in Ohio projects to over $5 billion since 2019.
Additional investments will be made in Google's data centers in Columbus, Lancaster, and New Albany. The announcement was made at Google's data center on Lockbourne Road in Columbus, where Pichai was joined by Ohio Lieutenant Governor Jon Husted and several other local leaders.
Why It Matters: This significant investment in Ohio's tech infrastructure comes at a time when the demand for AI data centers is on the rise. This investment in Ohio is part of a larger trend of tech companies expanding their data center operations. In May, Google announced a $1.1 billion investment in its Finnish AI data center to strengthen its AI business in Europe.
Companies are increasingly focusing on expanding their data center capabilities to meet the growing need for AI infrastructure. For instance, Apple Inc. is reportedly developing its own AI chips for data centers, a move that could disrupt the market.
Meanwhile, Google's DeepMind is transitioning from a research lab to an AI product factory, potentially challenging Google's long-standing dominance in foundational research. This shift in focus further underscores the increasing importance of AI infrastructure in the tech industry.
Additionally, Amazon.com Inc.'s cloud computing arm, Amazon Web Services, is in talks to invest billions in an Italian data center expansion as part of its strategy to enhance its cloud services across Europe.
Price Action: Alphabet Inc. Class C shares closed at $176.45 on Tuesday, down 1.30% for the day. After hours, the stock increased slightly by 0.085%. Similarly, Alphabet Inc. Class A shares closed at $175.09, a decrease of 1.21% for the day. The stock remained unchanged in after-hours trading, according to data from Benzinga Pro.
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote