Bolt Data and Energy, a data center development firm co-founded by former Google CEO Eric Schmidt, is in advanced talks with Google to secure a major commitment for a large-scale data center project in West Texas. The potential deal could see Google agree to a 250-megawatt power allocation, according to two sources familiar with the discussions. While the exact scope remains fluid and subject to change, the talks underscore the growing urgency among Big Tech firms to lock in infrastructure, power, and land for AI-driven expansion. Google declined to comment on the rumors, stating only, “We don't comment on rumors.” However, the company has previously announced plans to invest $40 billion in cloud and AI infrastructure across Texas by 2027, signaling a long-term commitment to the region. Bolt Data and Energy, launched in late 2023, recently completed a $150 million funding round, including a $50 million investment from Texas Pacific Land Corporation (TPL), a major landholder in West Texas. As part of the deal, Bolt will develop data centers on TPL’s property, which offers access to abundant power and water resources—critical assets as data center growth strains local utilities. A presentation shared with Business Insider outlines Bolt’s phased development plan: starting with an initial 250-megawatt facility, expanding in 250- to 500-megawatt increments to eventually form a 5-gigawatt campus. The project is one of several ambitious initiatives in Texas designed to meet surging demand from AI companies. Other major players are also pushing forward with large-scale projects. Fermi, a public company co-founded by former Texas governor and U.S. Energy Secretary Rick Perry, plans an 11-gigawatt campus in Amarillo. However, the project faced setbacks when Amazon withdrew a $150 million cash advance, causing Fermi’s stock to plummet by 50%. Despite this, Fermi’s CEO confirmed that discussions with Amazon remain active. Meanwhile, major lenders that provided $38 billion in financing for data center developments in Texas and Wisconsin for Oracle and OpenAI are struggling to offload portions of the loans. Concerns over Oracle’s financial health due to its aggressive AI spending have contributed to the hesitancy among investors. To address these concerns, Oracle announced plans to raise up to $50 billion in debt and equity in 2026 to support its AI infrastructure while maintaining a strong credit profile. Alphabet, Google’s parent company, revealed in its latest earnings report that it expects to spend between $175 billion and $185 billion on capital expenditures in 2026—double its 2025 spending—primarily to fund AI hardware and infrastructure. Amazon also disclosed last week that it plans to spend $200 billion this year on AI-related investments, highlighting a record-breaking wave of spending across the tech industry.