Google To Invest $9.5 Billion In US Offices, Data Centres In 2022

Alphabet and Google CEO Sundar Pichai has outlined another round of heavy investment and spending in the United States during 2022.

The tech giant confirmed it will spend $9.5 billion across its US offices and data centres this year. This is an increase from the $7 billion Google said last year it would spend in the US. Google also last year said it would create 10,000 new jobs in 2021.

But now the new investment for 2022 comes as Google staff return to the office after two years of remote working during the Coronavirus pandemic.

Data centres, offices

Sundar Pichai revealed Google’s latest spending commitment in a blog post on Wednesday, in which he revealed the tech giant has invested more than $37 billion in its offices and data centres in the US over the past five years.

“Today we’re announcing plans to invest approximately $9.5 billion in our US offices and data centres in 2022,” wrote Pichai. “Along with these investments, we expect to create at least 12,000 new full-time Google jobs by the end of the year, and thousands more among our local suppliers, partners and communities.

Pichai addressed an obvious questions as to why Alphabet is continuing to spend so heavily, investing in data centres and office spaces, despite the rise of remote and flexible working.

“It might seem counterintuitive to step up our investment in physical offices even as we embrace more flexibility in how we work,” admitted Pichai. “Yet we believe it’s more important than ever to invest in our campuses and that doing so will make for better products, a greater quality of life for our employees, and stronger communities.”

Pichai noted the creation of 12,000 US jobs in 2022, and cited new research published by the Bay Area Council Economic Institute, that “ creating one job at a high-technology firm generates over four more jobs in the local economy.”

“At the same time, our investments in data centers will continue to power the digital tools and services that help people and businesses thrive,” said Pichai.

“And as we work towards running our offices and data centres on carbon-free energy 24/7 by 2030, we’re aiming to set new standards for green building design – including pursuing certification through the International Living Future Institute for buildings like our new office in Sunnyvale, California,” he wrote.

Worldwide spending

Besides the data centres and offices, Google will continue to invest in offices in its home state of California and support affordable housing initiatives in the Bay Area as part of its $1 billion housing commitment.

It is not just the US that Google is investing in.

In January this year Alphabet continued to invest heavily in its real estate portfolio in the UK, with a $1bn (£728m) deal to buy the London development Central Saint Giles, next to Tottenham Court Road station and Oxford Street.

Google of course is also building its new 11 story London headquarters next to the railway lines that run in and out of King’s Cross railway station.

Google also has offices in London and Manchester.