Google announced plans on Monday to invest $1.5 billion to expand an Alabama data center located at a former Tennessee Valley Authority coal plant and powered by the federal agency.
Google will expand the data center in Jackson County, around 40 minutes southwest of Chattanooga, in 2026 and 2027. The internet’s search leader pledged to pay for 100% of the electricity it uses, including covering infrastructure costs driven directly by the data center.
The company has invested more than $2 billion in Jackson County since coming to the community in 2018 and said the site supports hundreds of full-time jobs. More than 1,000 contract workers will work at the site during construction, Google said in a press release. The expansion will include energy affordability and community education initiatives such as science, technology, engineering and math.
“From funding STEM education initiatives to supporting critical energy affordability programs, Google has consistently demonstrated a deep dedication to Jackson County,” Alabama State Senate Majority Leader Steve Livingston said in the release. “This new expansion will undoubtedly generate lasting, positive impacts for local families and businesses alike.”
(READ MORE: Trump gives TVA $46M for ‘clean, beautiful’ coal plant life extension)
The facility supports applications like Gmail, Google Maps and YouTube, as well as digital services used by hospitals and first responders, according to Google. The company entered into an agreement with TVA last year to curb its power use at times of high demand for the grid.
TVA helped recruit Google in 2018 to build the data center at the former Widows Creek Fossil Plant. The agency no longer recruits data centers, major power and water users that often create fewer jobs than other employers with similarly high usage.
“While TVA does not recruit or incentivize data centers, our low-cost, reliable power is a driving factor for businesses who want to move or expand in the valley,” TVA spokesperson Scott Fiedler said in an email.
(READ MORE: Local Tennessee officials are putting data center plans on ice to consider regulations)
The TVA board of directors approved the Google expansion in August 2024, Fiedler said. The data center’s electric capacity and operational energy use are confidential under Google’s contract with TVA. Agency officials have said electric demand from data centers is likely to double by 2030.
“TVA and Google have a project agreement,” Fiedler said. “Google will cover the costs required to upgrade the transmission system to accommodate the expansion.”
Google has contracted more than 300 megawatts of new power generation to the region, according to the expansion announcement. The company entered a partnership last year with TVA and advanced nuclear reactor developer Kairos Power to develop up to 50 megawatts of electricity to support Google data centers.
As the nation’s largest public power provider, TVA operates a system of power plants with an output of more than 32,000 megawatts. The agency has 3,770 megawatts of new capacity under construction, partly to help supply data centers. That’s enough power for more than 2.2 million homes.
TVA is considering rate changes that would raise electric costs for data centers by putting the facilities in their own rate class and ending their eligibility for a lower manufacturing rate.
The changes may come before the board for consideration in August as communities across the region oppose data center developments because of their power and water use.
Google is committed to replenishing more water than its centers use, the company said in the release. It has announced water stewardship commitments and signed onto the White House Ratepayer Protection Pledge in March.
“Our continued expansion in Alabama is driven by a long-term vision of shared success,” Thomas Gamble, Jackson County site lead at Google, said in the release. “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.”
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Contact business reporter Daniel Dassow at ddassow@timesfreepress.com or 423-757-6318.