Google is doubling down on its technique of boosting its footprint in New York Metropolis whilst tech rivals paused their enlargement plans within the Massive Apple as a consequence of employees’ desire for staying distant.
Sundar Pichai, the CEO of Google’s mum or dad firm Alphabet Inc., gave a vote of confidence to New York Metropolis’s financial prospects and its industrial actual property market.
“I’m personally long-term bullish on our progress in New York as an organization,” Pichai advised Crain’s New York Business.
“And we might try this provided that we’re optimistic to entry to tech expertise and having the ability to scale up.”
Pichai has put his cash the place his mouth is. Final yr, Google introduced it was shopping for the St. John’s Terminal constructing at West Houston Avenue close to the Hudson River for a whopping $2.1 billion.
Pichai advised Crain’s that Google plans to open workplaces on the location by the center of subsequent yr.
Google can be creating two different websites within the Hudson Sq. part of Manhattan. All collectively, the three buildings will comprise a campus totaling 1.7 million sq. ft.
Earlier this yr, Google unveiled a brand new campus on Pier 57 that can embrace workplace area in three buildings.
As of final September, Google employed 12,000 folks within the metropolis. The corporate mentioned it goals to extend that quantity by 2,000 staff within the coming years.
Pichai advised Crain’s that the town’s tech surroundings, which incorporates greater than 1,000 fintech startups, was an enormous lure for Google.
A minimum of 20 of these firms have attained “unicorn standing” — that means their non-public valuation is price at the least $1 billion.
“After I checked out particular sectors, like fintech, I used to be stunned on the scale and variety of startups in New York,” Pichai mentioned.
The CEO cited the town’s variety as one other essential draw. Pichai’s interview with Crain’s coincided with an announcement that Google would launch a spherical of grants totaling $4 million towards pc science training and instructor coaching within the metropolis.
Whereas Google plans to increase its New York footprint, different tech giants are extra hesitant.
Meta Platforms Inc., the mum or dad firm of Fb and Instagram, halted its deliberate expansions earlier this yr amid uncertainty and slowing progress within the tech sector.
Amazon additionally placed on maintain its plans to develop its presence in New York, according to Crain’s.