Google commits $1B to North Carolina data centers as AI demand surges

Google on Friday announced it will invest $1 billion within the next two years to expand its data center infrastructure in North Carolina.

The investment will focus on the expansion of a data center facility in Lenoir, North Carolina. Google has had a presence in the area for 15 years between the data center and an office in Durham.

The Google data center in Lenoir helps support Google services including Maps, Photos, Search, Workspace, YouTube and more, according to the announcement.

"Google's latest investment in the City of Lenoir and Caldwell County underscores a deep commitment to North Carolina's continued growth and success," said City of Lenoir Mayor Joseph Gibbons. "This funding will enhance our workforce, expand economic development opportunities, and ensure North Carolina remains a leader in innovation."

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Caldwell County Commission Chairman Randy Church said that investments like this one from Google are "critical for strengthening our community" and added that it "will bring new opportunities for local workers and help drive long-term economic success in our region."

In addition to Google's data center investment, the company announced it will provide $2 million to an Energy Impact Fund in collaboration with Blue Ridge Community Action, Blue Ridge Energy and Advanced Energy.

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The fund will help scale and accelerate energy initiatives in Caldwell County and focus on energy affordability, weatherization upgrades and energy efficiency for both low- to moderate-income households and K-12 schools. Rising electricity costs are driven in part by increased demand from data centers, particularly amid the artificial intelligence (AI) boom.

Google's funding will also help expand existing community solar programs, reducing the energy burden and promoting renewable energy access for residents of the county.

Jon Jacob, director of marketing for Blue Ridge Energy, said that the support from Google is a "perfect reflection of our cooperative spirit: members helping members, supported by a partner who shares our commitment to making life better for our local community."

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Other community investments by Google included in the announcement include a three-year, $270,000 grant to Communities In Schools of Caldwell County (CISCC).

The funds will establish the CISCC Workforce Development & Digital Equity Fund, which will work with the local schools and Caldwell Community College & Technical Institute (CCC&TI) to reduce technological and financial barriers for students pursuing vocational training through 2027.

Mark Poarch, president of CCC&TI, said that the collaboration "ensures that local students have the resources they need to transition seamlessly into the workforce. This fund is more than a grant; it is an investment in the long-term resilience and economic vitality of our entire community."

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Additionally, investments also include a $100,000 donation to the City of Lenoir to renovate the city's historic high school.