Google announces $US1b expansion in New York City

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Google's parent company Alphabet on Monday said it was investing more than $1 billion to set up a new campus in New York City.

The Alphabet Inc. division said it had reached lease agreements at 315 and 345 Hudson St. and signed a letter of intent at 550 Washington make up the new 1.7 million-square-foot (158,000-square-meter) campus, to be called Google Hudson Square. Once the Google Hudson Square campus is complete, it will serve as the primary headquarter for the company's Global Business Organization in NY.

The Alphabet company now has more than 7,000 employees working in New York City.

And fitting in with a vibrant city is part of what makes NY attractive to tech firms, along with a good amount of local talent and that whole finance-capital-of-the-world thing. Despite expensive bids and appeals from other regions of the United States, world-class cities can reliably offer tech companies the talent, influence and culture they are seeking. 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. The company now has more than 7,000 workers there.

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

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Saying Google has opened a string of new offices and data centers in 2018 - from Los Angeles, Boulder and Detroit to spots in Tennessee and Alabama - Porat added, "In fact, we're growing faster outside the Bay Area than within it".

Google has had an office in NY since 2000.

Bottom line: NY is better off relying on its natural advantages to attract employers, and should quit offering special deals in the name of jobs.

According to Google, these investments will allow the company to more than double the number of employees in New York City over the next decade.

The Google NYC expansion comes as other tech giants from the west coast start moving eastward. "Our investment in NY is a huge part of our commitment to grow and invest in US facilities, offices and jobs", she wrote.