Google Commences $1B Expansion in New York City
NEW YORK (AP) — Google is undergoing a huge expansion in New York City along the Hudson River that will allow it to double the number of employees. The expansion will cost more than $1-billion.
According to Ruth Porat, senior vice president and chief financial officer, the internet giant will fashion a campus exceeding 1.7 million square feet in the West Village neighborhood.
The company opened its first office in the city around twenty years ago, employing 7,000 people. Google plans on purchasing the Manhattan Chelsea Market this year for $2.4-billion and plans to lease more space at Pier 57.
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, creating upward of 25,000 jobs in the region.
Amazon, Google and other tech giants like Facebook are expanding beyond the traditional stomping ground of Silicon Valley, hungry for highly trained engineers and other staff that can support expansion.
The Northeast is proving to be a good match, with a strong base of higher education and a concentration of younger, educated workers from Boston to Manhattan. But it’s not just the Northeast.
Apple last week announced plans to build a $1 billion campus in Austin, Texas, that will create at least 5,000 jobs.
The bidding for programmers is driving salaries higher, which in turn is catapulting the average prices of homes in many parts of the San Francisco Bay Area above $1 million. Many high-tech workers are thus choosing to live elsewhere, causing major tech employers such as Apple, Amazon and Google to look in new places for the employees they need to pursue their future ambitions.
Google has more than 7,000 workers in New York and Facebook has more than 2,000. According to official statistics, tech sector employment in the New York grew by 65 percent to reach an estimated 134,700 from 2010 to 2017.
Google hopes to move into the new campus by 2020.
Porat said that the company’s most recent investments gives it the ability to more than double the number of Google workers in New York over the next 10 years.
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