Wednesday , June 16 2021

Google outlines $ 13 billion in US investments



Google Data Center Southland is visible from the air in Council Bluffs, Iowa, United States, January 4, 2019Copyright on the image
Reuters

Image caption

Google is expanding its network of data centers, such as Iowa

Google plans to spend more than $ 13 billion this year as it builds data centers and offices in the United States.

The commercial giant has popularized plans in a blog post on Wednesday, saying investment will boost more than 10,000 jobs in construction.

The company will add tens of thousands of workers, doubling its presence in countries like Georgia.

Google's focus on US investments comes amid more concern over slowing US business spending.

Big technology companies like Google also face criticism that they have not contributed so much to the economy through jobs, taxes and other support as corporate giants from earlier epochs.

In this position, Google's CEO, Sundar Pichai, said the company hired more than 10,000 people in the US last year and invested $ 9 billion.

This figure will grow to $ 13 billion in 2019 and will include major expansions in 14 countries, including Oklahoma, South Carolina, Ohio and Nebraska.

Google expects that 2019 will be the second year in a row, it grows faster outside the bay area than it is in it, becoming a presence in 24 of the 50 countries, he said.

"I am proud to say that our footprint in the US is growing rapidly," said Mr. Pichai.

Copyright on the image
Reuters

Image caption

Google has announced it will expand its offices in New York with a new campus

The investments that the company highlighted include already announced expansion plans in New York.

Unlike Amazon, which also said it would build a university in New York, Google's engagement was not accompanied by a subsidy package – a move that earned the firm praise last year.

However, the company's growth provokes controversy elsewhere, amid concerns about gentrification.

The company's buses are headed to San Francisco. Last year, it also cut office plans in a modern Berlin district after opposition from local players.

Investments come as Google's parent company, Alphabet, more than twice its profits last year to over $ 30 billion, while revenues have risen by more than 23% to nearly $ 137 billion.

Despite these gains, investors questioned the rising costs of Alphabet.

Company capital expenditures increased to $ 25.1 billion last year and operating expenses exceeded $ 50 billion.

During a conversation with financial analysts, the Chief Financial Officer of Alphabet said the company remains committed to investments, but that costs are likely to "moderate significantly."


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