Google Is Spending $1 Billion On a Massive New York City Expansion

Google Is Spending $1 Billion On a Massive New York City Expansion

Google has set plans to dramatically boost its footprint in New York City: The internet giant said it will invest more than $1 billion to establish a new 1.7-million-square-foot campus, Google Hudson Square, in Manhattan.

"New Yorkers consider themselves to be more in tune with the reality of life in USA urban centres and believe this helps them innovate products and services that are more closely aligned with the needs of the average American", he said.

The announcement follows plans from other tech giants to expand their operations outside their home bases, such as Amazon's new HQ2 headquarters in NY and Virginia. With investments in Google Chelsea and Google Hudson Square, the company said it would more than double the number of employees in NY over the next 10 years. Amazon's move to both New York City and Virginia, in particular, is causing some controversy due to the heavy tax breaks the company is receiving.


It also makes sense for Google as NY has been the center for their core advertising business, Cordwell added. In the end, the online retailer made a decision to open two new facilities - one in New York City and another in Northern Virginia near Washington, D.C.

It is the tech industry's latest major expansion beyond the Seattle-San Francisco Bay corridor.

As NPR's Jasmine Garsd reports from New York, Amazon's decision "was met with some public trepidation, and questions over what responsibilities big tech companies have toward communities when they move in".


Google has more than 7,000 workers in NY and Facebook has more than 2,000.

Mark Muro, a senior fellow with the Brookings Institution Metropolitan Policy Program, tells Garsd that he's anxious the advantages that tech companies can bring won't be enjoyed by the rest of the country.

Google's plan to expand is being announced a month after Amazon said it would put one of its second headquarter locations in New York's Long Island City neighborhood. "These are fantastic cities that attract a lot of great talent". (Pictured above: Artist's rendering of 315 Hudson St., which is now undergoing redevelopment by its owner, real-estate firm Jack Resnick & Sons.) That will be followed by the nearby St. John's Terminal building, at 550 Washington St., in 2022 once the building is complete. Google says the buildings at 315 and 345 Hudson Street will be ready for employees starting in 2020, and the 550 Washington Street location will be ready in 2022.


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