Google plans to invest $250 million this year to continue developing its New York City campus.
The tech giant announced its commitment Thursday as part of a broader plan to invest more than $7 billion in offices and data centers and create more than 10,000 full-time jobs across the U.S. in 2021.
"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," said Sundar Pichai, CEO of Google and Alphabet, in a statement.
Google (NASDAQ: GOOGL) has more than 11,000 full-time employees in New York state. It's been working on building out its real estate footprint in New York City, with plans for 1.7 million square feet of office space in the Hudson Square neighborhood, bordered by Tribeca, Soho and the West Village.
The $250 million capital investment will entirely go toward existing real estate projects. An exact breakdown wasn't provided for how much is going to each site.
That will include occupying the entirety of St. John's Terminal at 550 Washington St., which stretches the length of two city blocks along the Hudson River. The 1.3 million-square-foot office property topped off construction in November and is expected to be completed by mid-2022 and occupied by 2023, according to Google.
St. John's Terminal rendering
Google has also committed to take 320,000 square feet of office space at Pier 57, along the Hudson River, where construction is underway.
The Pier 57 development will also include an events center, retail space, 24,000 square feet of community space for educational and environmental programs, and 5,000 square feet of open public space with views of the Hudson River.
Beyond its physical real estate, Google executives say they are making an effort to diversify the company's workforce, including in New York. Pichai last year joined the NYC CEO Jobs Council, a group of employers who say they will hire 100,000 low-income Black, Latino and Asian New Yorkers over the next decade.
New York is Google's second-largest campus outside of the Bay Area. The tech company didn't disclose how many people it plans to hire in the city this year, but a spokesperson said New York will remain the second-largest campus after all of its 2021 investments across the country are complete.
Google executives in 2018 said they planned to double the workforce in New York to more than 14,000 employees by 2028. The spokesperson said this year's hiring will add toward that goal.
The company, headquartered in Mountain View, California, released its 2020 economic impact report on Thursday as well. Its research showed 169,600 New York businesses, publishers and nonprofits used Google products last year, generating more than $70 billion in economic activity.
Google's announcement Thursday marks a doubling down on its commitment to New York City at a time when many companies are taking a closer look at their real estate needs after a year of working remotely during the Covid-19 pandemic.
Other tech giants have similarly reaffirmed over the past year that they plan to stay in New York for the long haul, including by signing new leases.
Facebook snatched up 730,000 square feet of office space at the Farley Building on the West Side. Amazon laid out plans to add 2,000 jobs in the city and open an office at the former Lord & Taylor Building in Midtown. And Apple inked a deal for a 116,500-square-foot expansion at Penn 11 in Midtown West.
Now, Google's plans are another positive indicator for the city's recovery, Mayor Bill de Blasio said.
"This is a massive investment in New York City by Google," de Blasio said in a statement. "Our economy is going to come back stronger and fairer than ever by creating thousands upon thousands of new tech jobs, supporting small businesses and showing the world the strength of New York City’s diverse, unparalleled workforce."
