Google Goes Big in Texas: Left Coast Tech Giant Snaps Up Massive Warehouses

In a move that's sure to make even the most die-hard Texans raise an eyebrow, California-based tech behemoth Google has snatched up a colossal warehouse in Fort Worth, marking its second major lease in Texas this year. That's right, folks—Google is moving into the Lone Star State in a big way.

The tech giant has signed a lease for a staggering 1.1 million-square-foot warehouse in west Fort Worth, the country's fourth-largest metropolitan area. The property, encompassing a whopping 520 acres at Majestic Silver Creek Business Park, was originally reported by CoStar. The lease officially kicked off on October 1st.

Built last year by another California-based firm, Majestic Realty, the facility is located near Loop 820 and Silver Creek Road. It seems even the Left Coast can't resist the allure of Texas' business-friendly environment.

Google's Second D-FW Lease Follows $1B Investment Pledge

This isn't Google's first rodeo in North Texas. Just weeks ago, the tech giant snapped up another property over one million square feet in the Northlake 35 Logistics Park. The project, estimated to cost $20.2 million, is listed as "Project Beast" under the Texas Department of Licensing and Regulation. The first phase is set to be completed in 2026.

While Google hasn't confirmed its plans for this second lease, it's rumored to be part of their $1 billion investment in Texas to bolster cloud and data center infrastructure. In August, The Dallas Morning News reported that Google was focusing on its data centers in Midlothian and Red Oak to meet growing demand for artificial intelligence, Google Cloud, and other products.

Google Leases Among Top 5 Largest Signed in Texas in 2024

According to Cody Gibbs, CoStar's director of market analytics for Dallas-Fort Worth, both of Google's recent leases are among the top five largest signed in Texas this year. Only two Houston transactions exceed the size of the Majestic Silver Creek property.

"North Texas in general has been incredibly strong for these million-square-foot-plus deals," Gibbs explained. "Three out of five of the state’s largest new leases signed in 2024 were made here in Dallas-Fort Worth — including Post Consumer Brand’s 1.1 million (square foot) distribution center in Wilmer announced at the start of the year."

Gibbs also shared insights on the likely purpose of the properties: "These two locations are anticipated to house data center materials as the company moves forward with plans to expand its existing data center campuses in Midlothian and Red Oak."

The Dallas-Fort Worth area has seen record levels of data center construction this year. A CBRE North American Data Center Trends Report from the first half of 2024 shows it had the second-largest data center inventory in the country, trailing only northern Virginia. Dallas-Fort Worth also ranked sixth in net leasing activity.

So, there you have it—Google is betting big on Texas, and we can only hope they remember to leave their woke politics at the California border.