Alphabet’s US$3.3bn South Carolina Data Centre Investment

Data centres are springing up everywhere, and Alphabet is putting a substantial amount of money behind even more. 

Alphabet, the parent company of Google, has announced plans to invest US$3.3bn in South Carolina to construct two new data centres. 

“Today marks a significant milestone in Google’s collaboration with South Carolina,” shares Monique Picou, Vice President Global Cloud Supply Chain and Operations at Google.

“Our continued investment is a testament to the state’s exceptional workforce and thriving business environment.

“Google data centres are the backbone of digital services that underpin our modern lives, along with tech innovation like AI. We’re grateful for the collaboration with leaders in the state to not only grow our digital infrastructure here but contribute to this thriving community.”

Developing new data centres

The investment will see Alphabet establish two new data centre campuses in Dorchester County, South Carolina, whilst also expanding its existing facility in Berkeley County. 

The Dorchester County project, which accounts for US$2bn of the total investment, will create 200 new operational jobs and will be split between two locations: the Pine Hill Business Campus in Ridgeville and the Winding Woods Commerce Park in St. George.

The remaining US$1.3bn will be channelled into the expansion of the Berkeley County campus.

This move by Alphabet is part of a broader trend in the tech industry, where companies are investing heavily in data centre infrastructure to support the burgeoning AI sector. The massive computational power required for training and running large AI models necessitates robust and expansive data centre facilities.

As AI continues to permeate various aspects of technology and business, the demand for such infrastructure is expected to grow exponentially.

About Alphabet

Alphabet is one of the largest technology companies globally, often competing with other tech giants like Amazon, Microsoft, and Meta Platforms in various sectors including cloud computing, digital advertising, and artificial intelligence.

It is the parent company of Google and several other businesses, established in 2015 as part of a corporate restructuring of Google. This move has allowed Alphabet to separate its core internet services from its other ventures, which include various technology and research initiatives.

The reorganisation allowed Google to focus on its core business, while Alphabet could manage diverse projects such as Waymo (self-driving cars), Verily (life sciences), and other ventures, providing more transparency and accountability in its operations. 

Within Alphabet, Google is the primary revenue generator, offering services such as search, advertising, cloud computing and consumer electronics.

The company reported revenues of US$328.284bn for the 12 months ending June 30 2024, a 13.38% increase year-over-year.

Looking to its future, Alphabet continues to invest heavily in research and development across its various sectors, particularly in artificial intelligence and machine learning technologies.

Alphabet’s investments

Alphabet's investment in South Carolina is not an isolated incident, with its 2024 numbers seeing a 13% increase against the previous 12 months. This level of income – and outgoings – highlights the scale of investment required to remain competitive in the AI race.

As companies like Alphabet pour billions into data centre infrastructure, they are not just expanding their capacity but also driving innovation in areas such as energy efficiency, cooling technologies and high-performance computing.

This comes as Microsoft, another tech giant heavily invested in AI development, recently announced a partnership with BlackRock and Abu Dhabi-backed investment firm MGX to launch a fund exceeding US$30bn. This fund aims to invest in AI infrastructure, including the construction of data centres and energy projects.

******

Make sure you check out the latest edition of Data Centre Magazine and also sign up to our global conference series - Tech & AI LIVE 2024

******

Data Centre Magazine is a BizClik brand