Google Splashes $1B on New York Expansion
Google plans to spend more than $1 billion to build a new campus in New York City, joining Apple and Amazon in real estate land grabs outside California.
Google already has an office in New York City, its first outside California, which now has more than 7,000 employees working on search, ads, Maps, YouTube, Cloud, technical infrastructures, sales, partnerships and research, Porat says. Google started in New York in 2000, with a one-person sales office operating out of a Starbucks on 86th St.
Earlier this year, Google announced the $2.4 billion purchase of Manhattan Chelsea Market and plans to lease additional space at Pier 57 in New York. (See Alphabet Splashes $7.7B on Capex Spree.)
The company hopes to start moving into the two Hudson Street buildings by 2020, and another on Washington Street -- part of the same Hudson Street complex -- in 2022, once construction is compete. Google Hudson Square will be the primary location for Google's New York-based Global Business Organization, Porat says.
Porat touts contributions that Google has made to local communities. The company contributed more than $150 million in grants and employee matching to New York nonprofits, as well as supporting public resources such as parks, free WiFi, community monuments and education. Google hasn't pursued incentives from New York, according to the Wall Street Journal.
That's in stark contrast with Amazon.com Inc. (Nasdaq: AMZN), which will benefit from more than $2.4 billion in incentives from three states, which has proven controversial with citizens. Amazon said in November it plans new headquarters in New York City and northern Virginia, as well as a shipping center in Tennessee, investing $5 billion and creating more than 50,000 jobs. (See Amazon Selects NYC & Northern Virginia for New HQ.)
Apple Inc. (Nasdaq: AAPL) said last week it plans a $1 billion campus in Austin, Texas, part of a nationwide expansion that includes a five-year, $10 billion data center investment. (See Apple to Build $1B Austin Campus & $10B Nationwide Data Center Expansion.)
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— Mitch Wagner Executive Editor, Light Reading