Alphabet (GOOGL) Stock: Google Goes Nuclear in Alabama With $1.5B Data Center Bet

TLDR

• Google is investing $1.5 billion in 2026–2027 to expand its data center campus in Jackson County, Alabama
• Google will cover 100% of its own power and infrastructure costs, aligning with the White House’s Ratepayer Protection Pledge
• The expansion will bring 1,000 contract workers to the region during construction
• Google is contributing $2 million to an Energy Impact Fund and $550,000 for STEM kits for local students
• The facility, built on a former coal plant site, may eventually be powered by nuclear energy through a deal with Kairos Power and the TVA

Google is putting $1.5 billion into its Jackson County, Alabama data center campus over 2026 and 2027. The expansion will build out a facility that has been operating since 2018 or 2019 on the site of a former TVA coal plant.

Alphabet Inc., GOOGL

What stands out here is the cost commitment. Google says it will pay 100% of its own power and infrastructure costs, a position that aligns with the Trump administration’s Ratepayer Protection Pledge. That pledge requires data center operators to cover their own energy costs rather than passing them on to local ratepayers.

The Alabama Legislature passed legislation earlier this year requiring exactly that. So Google is getting ahead of it rather than fighting it.

The Jackson County facility currently has contracts to supply 300 megawatts of energy to the region. For future power needs, Google has an existing partnership with Kairos Power and the Tennessee Valley Authority, signed in August 2025, to supply up to 50 megawatts of advanced nuclear power to Google data centers in Alabama and Tennessee.

Community Investment

Alongside the infrastructure spend, Google is committing $2 million to an Energy Impact Fund, run in partnership with TVA and the Community Action Agency of Northeast Alabama. The fund will go toward weatherization and energy efficiency programs to help lower utility bills for local families.

Google is also donating $550,000 to provide STEM kits for students in grades 4 through 8 across the Jackson County School District.

Thomas Gamble, Google’s Jackson County site lead, said the expansion is driven by “a long-term vision of shared success” and that the company aims to build “a foundation of opportunity that will benefit the region long after construction is complete.”

State Senate Majority Leader Steve Livingston called the investment a move that will “generate lasting, positive impacts for local families and businesses alike.”

Data Center Scrutiny

Data centers have come under growing scrutiny for their energy and water usage. Large facilities can consume up to 5 million gallons of water per day, according to the Environmental and Energy Study Institute.

Google pointed to its water stewardship work in response, including a commitment to replenish more water than it uses at all sites by 2030 and annual water use reporting for its data center locations. The company also supports the Nature Conservancy’s restoration efforts in the Paint Rock River Watershed.

On the political side, Alabama polling shows the public is split on data centers. Around 22% of respondents viewed them positively, 25% negatively, and 37% said they are a mixed bag.

Google says the Alabama campus, which already supports hundreds of full-time and construction jobs and has helped train over 130,000 Alabamians in digital skills, will bring 1,000 contract workers to the area during the construction phase and will prioritize local businesses for its operations.

U.S. Senators Katie Britt and Ben Ray Luján recently introduced the Advancing Water Reuse Act, which would provide a 30% tax credit for data center projects that capture and treat wastewater, stormwater, or graywater for reuse.

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