Google has massive expansion plans for the US and India, totalling at $17 billion. Over the next few years, Google will invest billions into new office space and digital infrastructure.
- With a kitty upwards of $7 billion, Google will invest in offices and data centres across United States in 2021.
- Google aims to create 10,000 new full-time “Google jobs” across the country.
- Apart from expansions across 19 American states, Google will also be investing in new uncharted domestic locations.
- Google has been on a similar expansion spree in its India operations, leasing and acquiring new corporate real estate.
- Recently, Google India has picked up more than 4 million sq. ft. of office space.
Google has massive expansion plans in the physical world with multiple corporate real estate acquisitions. Amid the Covid-19 pandemic, the American tech behemoth has decided to invest more than $7 billion in real estate across the U.S. this year. The investment aims to expand its offices and data centers. The announcement came almost 8 months after Google rolled out its ambitious $10 billion worth investment strategy in India over the next 5-7 years. The augmentation project in the U.S. will be undertaken across 19 states with the major allocation of $1 billion to California.
The move by Google is expected to inject 10,000 full-time jobs in the American market.
The announcement came after the parent company Alphabet entirely cut-down its real estate expenditure in 2020 due to the global pandemic along with the first-ever year-on-year drop in the revenue of Google in the second quarter of 2020.
Google’s 2021 Back to Office Plans
In a blog post on Thursday, CEO of Google Sundar Pichai said, “Coming together in-person to collaborate and build community is core to Google’s culture, and it will continue to be an important part of our future. So we continue to make significant investments in our offices around the country, as well as our home state of California, where we will be investing over $1 billion this year.”
“…I believe a lasting economic recovery will come from local communities, and the people and small businesses that give them life… Google wants to be a part of that recovery.”Google CEO Sundar Pichai
While a lot of companies throughout the world are adopting a permanent work-from-home model, Sundar Pichai made clear that Google will expect all its employees to return to the office by fall, three days a week.
The CEO of Google Cloud Thomas Kurian has already begun working on ensuring the investors of a speedy recovery of the heavy losses incurred in 2020. The expansion of data centers throughout the U.S. is part of the same endeavor as the company aims at aggressively expanding cloud business. Last year, Google registered a record drop in revenue between $5.61 billion to $13.06 billion.
The Realty Domination Plan in the U.S.
As the news about the real estate expansion plan of Google’s workspace circulates, the company also announced that thousands of new job roles will be added in Washington D.C., Chicago, Atalanta, and New York. The places are shortlisted to encourage diversity of communities at the company. Similarly, Nebraska, South Carolina, Texas, Nevada, and Virginia are Google’s top picks to invest ramp up the expansion of data centers.
“Our data centers are what powers your searches, emails, photos and the maps that help you find the fastest way home; they’re also important to the fabric of local communities, from providing opportunities for supply chain partners and small businesses to supporting distance learning in South Carolina and Nevada,” said Sundar Pichai.
Not confining to just the silicon valley, Google is stretching its reach to the South of the U.S. too with its real estate expansion plan. New cloud engineering sites will be established in North Carolina and Durham and the U.S. Google Operations Center will be opened in Southaven, Mississippi. The investment in the Austin campuses will continue and the first Houston will be set up in Texas. A new Reston office building will be opened in Virginia and the Loudoun County data center will also be expanded.
Watch: Google’s Massive HQ
Google’s India Investment Plan
In July 2020, Google announced that over the course of the next 5-7 years, the company will aggressively invest through equity, partnerships, and other mediums with a total investment of $10 billion. The tech giant said that the reason for such investments was to “accelerate digitization” in India.
The $10 billion investment will mobilize the goal of affordable access to the Internet in vernacular languages of different regions in India. The company will also build new services and product sectors namely education, agriculture, health, small and medium businesses. Google also envisioned helping India in its path of digital literacy, upliftment of rural economies, and outbreak predictions. The ambitious investments will be made through the combination of different mediums like partnerships, medium investments, infrastructural development, ecosystem and operational investment, etc.
However, this won’t be a debut step by the tech-giant to expand its horizons in India. As part of its real estate and market expansion plan, Google is investing in more office space as well as some startups and ventures in India, starting with expansions in its HQ city Hyderabad.
Watch: Google India Headquarters
Real Estate and Investment in India
In 2020, Google made its largest corporate real estate deal in India, acquiring more than 2 million sq. ft. in Hyderabad from Salarpuria Sattva Group. Likewise, Google India picked up 450,000 sq ft office space in Tata Realty and Infrastructure Ltd (TRIL) property Intellion Edge in Gurgaon. Both deals are reportedly 5-year leases. The new spaces are expected to serve as delivery centers for world markets. In the year before the two deals, Google India had leased 1.2 million sq ft and 500,000 sq ft in Bagmane RIO and Bagmane Capital, both in Bengaluru. In the last couple of years, Google has picked up more than 4 million sq. ft. of office space in India.
In 2013, Google invested a sum of INR 3.13 crores in Sana Ventures and INR 3 crores in Agastya International Foundation. This was followed by a $45,000,000 investment in Dunzo. Google has also invested in the ed-tech front of India- Rs. 39 crore in CueMath, an educational portal. Amid the coronavirus pandemic, the California-based company invested $27,500,000 in the Gurugram based startup Aye Finance.