SAN FRANCISCO (CBS SF/AP) — Google will invest more than $13 billion in building data centers and offices across the U.S in 2019, the company announced Wednesday.
The Mountain View, California-based company emphasized its new locations in the Midwest and South in a blog post announcing the investment.
Google will build new data centers in Nevada, Texas, Oklahoma, Nebraska, Ohio, South Carolina and Virginia. Pichai estimated the construction of the new centers will employ 10,000 workers.
It makes good political sense for Google to highlight its expansions outside coastal cities, said CFRA Research analyst Scott Kessler. U.S. legislators have paid increasing attention to Google and other big tech companies in the past year, and are considering passing privacy laws to regulate the companies’ reach. Investing more widely across the U.S. could help it curry favor with federal politicians and officials, he said.
Google is focused on expanding its cloud-computing business, a market where it faces stiff competition from larger rivals Amazon and Microsoft.
The company will have a physical presence in 24 states by the end of the year. It currently has locations in 21 states, and is expanding into Nevada, Ohio and Nebraska.
- San Jose’s Alviso Neighborhood Braces For Google Development
- Google Parent Company Alphabet Stock Slides Despite Strong 4Q Earnings
Its expansion is likely also a way to attract new employees, Kessler said. Google will add an office in Georgia, and expand its offices in several cities including in Seattle and Chicago.
Google said it spent more than $9 billion on similar expansions across the country last year.
Google did not give an exact number of employees it expects to hire as a result of the 2019 expansions, but said it would be in the “tens of thousands.”
© Copyright 2019 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.