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Monday, February 24, 2025

Apple set to open massive AI server in Houston as part of $500 billion U.S. investment

Summary:

  • Apple said it will work with partners to open a 250,000-square-foot AI server manufacturing facility in Houston, Texas.
  • The new factory, which is slated to open in 2026, will form part of a $500 billion in the U.S. over the next four years.
  • In addition to the new Texas facility, Apple said it also plans to hire around 20,000 employees across the U.S. over the period.

Early Monday morning (2/24), Apple announced plans to establish a new artificial intelligence server factory in Texas as part of a $500 billion investment in the U.S. The technology giant will collaborate with partners to build a 250,000-square-foot manufacturing facility in Houston, which will produce servers for Apple Intelligence, its AI-powered personal assistant for iPhone, iPad, and Mac devices.

Scheduled to open in 2026, the Texas facility is a key component of Apple’s broader investment strategy over the next four years. Alongside the new factory, the company plans to hire approximately 20,000 employees across the country, with a focus on research and development, silicon engineering, software development, and AI and machine learning.

“We are optimistic about the future of American innovation and proud to expand our long-standing U.S. investments with this $500 billion commitment,” Apple CEO Tim Cook said in a statement.

The announcement follows a recent meeting between Cook and President Donald Trump. Apple has faced pressure from the Trump administration regarding its manufacturing operations, as the company assembles most of its products in China. Earlier this month, Trump imposed an additional 10% tariff on Chinese goods, adding to existing tariffs of up to 25% from his first term.

Apple’s investment plan includes partnerships with U.S. suppliers, content production for Apple TV+ in 20 states, and expanded research and development initiatives. The company also said it remains one of the country’s largest taxpayers, having paid over $75 billion in U.S. taxes in the past five years, including $19 billion in 2024 alone.

Additionally, Apple also announced it will double its U.S. Advanced Manufacturing Fund to $10 billion, launch a new manufacturing academy in Michigan, and expand its domestic R&D efforts, particularly in areas such as silicon engineering.

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