Google intends to spend $13 billion on its U.S. operations for building new and expanding its existing data centres and offices across the country.
Google CEO Sundar Pichai announced in a company blog post that it aims to spread its offices, particularly in the Midwest and South regions. The tech giant will build new data centres in Nebraska, Nevada, Oklahoma, Ohio, South Carolina, Texas, and Virginia. Pichai estimated that this multi-billion investment would employ 10,000 workers.
The company’s chief executive also said the plan includes significant “renewable energy investments” in the U.S. during its expansions.
Google targets to expand its cloud-computing division, which faces strict competition with rival tech giants Amazon and Microsoft.
Pichai said that with the planned expansion, Google will have “a home” in 24 states, which include data centres in 13 communities. The company expects 2019 to be the second consecutive year it expands faster outside of the Bay Area than within it. Last year, it said it invested more than $9 billion on the same kind of expansions across the country.
The investments take place as Google’s parent company, Alphabet, saw its profit surge last year to more than $30 billion, while its revenue soared to 23% to almost $137 billion.
In reaction to the search company’s aggressive investment, CFRA Research analyst Scott Kessler said Google’s move could help gain favour with politicians and government officials. American lawmakers have been mulling on legislating privacy laws to monitor the companies’ reach. Google and other big tech companies have also faced criticism that they lack contribution to the US economy through job generation, taxes, and additional government support compared to giant corporations in past eras.
