Google will inject $7 billion in data centers and offices
What's the story
As vaccines begin rolling out, Google is already preparing for the resumption of normal office operations. The company has earmarked more than $7 billion to real estate across the US for the year 2021 alone. A portion of the money will go toward expanding data centers and offices across 19 US states, which also include Atlanta and Washington DC.
Moving out
California gets less than 15 percent of total spending
The $7 billion investment will generate at least 10,000 full time jobs. The company will also aggressively add data center capacity to improve cloud services. California has only been allocated $1 billion, which is a fraction of the total amount. This isn't surprising since businesses have been fleeing the state owing to massive taxes, growing homelessness, law and order problems, and backbreaking COVID-19 lockdowns.
Race matters
Sundar Pichai focuses on Chicago to fulfill diversity hiring promise
Google will add thousands of new roles through new office spaces allocated for Atlanta, Chicago, New York, and Washington DC. Chicago is an interesting choice since it is uncommon for tech companies to set up operations there. However, it makes sense when you consider Google CEO Sundar Pichai's commitment to diversity hiring that specifically includes Black and Latino communities.
Starting September
Google won't be sticking to permanent work-from-home arrangement
Further, even as most corporations have embraced the work-from-home culture, Google insists on doing things the old-fashioned way. That explains the massive push toward expanding office space. The tech conglomerate plans to bring its employees back to offices starting September. The company won't adopt a permanent remote work arrangement, instead requiring workers to report to office three days a week.
Do you know?
Spending freeze lifted on the heels of first-ever revenue decline
The investment in real estate and technology infrastructure comes after Google's parent company Alphabet slammed the brakes on spending owing to the pandemic. The company recording its first-ever year-on-year revenue decline was also a major catalyst for the decision.