Google announced plans to spend as much as $1 billion on a new campus in the city of New York. The move is similar to one announced by Amazon earlier in the year when the world’s largest online marketplace decided to expand into the financial capital of America. Both companies are expected to create thousands of jobs with the moves.
The new facility is known as Google Hudson Square and measures in at 1.7 million square feet. Google explained via blog post the campus will include property located on both Hudson and Washington Street.
The plan is for Google to begin working out of the building no later than 2022. The company also intends to grow the workforce to 14,000 employees over a ten year period.
The move on the part of Google is in line with what appears to be a recent trend by major companies to invest in operations outside of their home base. Apple Inc. announced a week ago that it would be spending a $1 billion on a campus it plans to build in Austin, Texas.
Amazon informed the public last month that its new offices in New York and Washington D.C. would produce 25,000 job opportunities for American workers.
The move by Google to invest money into property located in Manhattan is a reminder of the increased importance of New York City for the future growth of technology companies. The city comes complete with an abundance of white-collar workers and has a great infrastructure. These factors make NYC a better option than many other cities that would require a larger investment.
Ruth Porat, a Google CFO, explains the New York expansion is a sign of Google’s commitment to the growth of jobs and facilities in the United States.
James Cordwell is an analyst for Atlantic Equities. Cordwell says the Google move is totally understandable once understanding the amount of talent available to them in the city of New York.
Major companies in the United States are also under heavy pressure from the administration of United States President Donald Trump to create more jobs for workers in the country. Corporations that have closed facilities in the United States or moved operations to foreign countries have received sharp criticism from President Trump.
The Wall Street Journal broke news a month ago regarding a deal being close to completed by Google to take control of a New York City building that would provide workspace for more than 12,000 workers.