Google to Invest $7B in Data Centers and Office Space in 2021

Google is planning to invest $7 billion in offices and data centers in 19 states.
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Alphabet's  (GOOGL) - Get Report Google said Thursday it plans to invest more than $7 billion on offices and data centers across the U.S. this year, including $1 billion in California.

"I believe a lasting economic recovery will come from local communities, and the people and small businesses that give them life," said CEO Sundar Pichai.

"These investments enable us to create new opportunities in the places where we operate; they’ll also make it possible to provide products and services that help boost economic recovery."

The company said the money will go toward expanding offices and data centers across 19 states.

In a blog post, Pichai said Google will create at least 10,000 new full-time jobs with plans to add thousands of roles in Atlanta, Washington, D.C., Chicago and New York.

"This will help bring more jobs and investment to diverse communities as part of our previously announced racial equity commitments," Pichai wrote.

Google said it was investing in data center expansions in Nebraska, South Carolina, Virginia, Nevada and Texas. 

"Our existing data center sites in Nebraska, Ohio, Texas, and Nevada will be fully up and running in 2021. Our data centers are what powers your searches, emails, photos, and the maps that help you find the fastest way home; they’re also important to the fabric of local communities, from providing opportunities for supply chain partners and small businesses to supporting distance learning in South Carolina and Nevada," wrote Pichai.

Google's parent company, Alphabet, paused its real estate spending last year due to the pandemic.

In 2020, Google Search, Google Play, YouTube, and Google advertising tools helped provide $426 billion of economic activity for more than 2 million American businesses, nonprofits, publishers, creators, and developers, according to a 2020 U.S. Economic Impact Report, Pichai cited in the company blog post.

Shares of Alphabet were down 1.55% to $2049.80 on Thursday.

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