Google to spend $1 billion on major New York City expansion

Google to Spend $1 Billion to Establish New Campus in New York City

Google to spend $1 billion to establish new campus in New York

Google already owns a city block of Manhattan that holds the Chelsea Market building, but it will expand its presence in the city once again. 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. It also follows Amazon's plan to build its new HQ2 campus in Long Island City in the Queens borough. "Google Hudson Square will be the primary location for our New York-based Global Business Organization", Porat wrote in the blog. The move could allow the company to more than double the current 7,000 people it employs in the city over the next decade.

The tech giants bring the promise of high-paying and stable jobs - but because of their huge size and resources, their expansions into far-flung cities can also trigger concerns among local residents and businesses.

Google parent Alphabet's chief financial officer Ruth Porat said it would lease large office buildings in lower Manhattan, which will become the centerpiece of a campus of more than 1.7 million square feet (160,000 square meters). The company has lease agreements at 315 and 345 Hudson Street in New York City as well as a letter of intent to lease space at 550 Washington Street.

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The move is the latest high-profile expansion from a US tech giant, following big investments from Apple and Amazon to create new office spaces in New York, Washington, D.C., and Texas.

Google plans to invest over $1 billion in the creation of the campus.

Tech companies are "coming to the realisation that the Bay Area, which has traditionally been the major centre of tech activity in the USA, is getting expensive and crowded", said Andrew Bartels, principal analyst at Forrester Research.

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The Google NYC expansion comes as other tech giants from the west coast start moving eastward.

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However, Google has had a presence in NY for years already with little fanfare.

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Earlier this year, the company announced a US$2.4 billion purchase of the Manhattan Chelsea Market.

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