Google CEO Sundar Pichai pledged to spend more than $13 billion this year on data centers and offices in the U.S.
This will include “major expansions” in 14 states and “tens of thousands” of new employees, Pichai wrote in a blog post. He added that “2019 marks the second year in a row we’ll be growing faster outside of the Bay Area than in it.”
For comparison, in 2018 the tech giant invested $9 billion in facilities and hired more than 10,000 people in the U.S.
The expansion will give Google facilities in 24 states, including 13 data centers, and help it compete against its top cloud competitors, market leader Amazon Web Services (AWS) and No. 2 Microsoft Azure. Both of these companies are also increasing their footprints in the U.S. and abroad.
Google’s new 2019 data centers will be located in Ohio, Nebraska, Virginia, Texas, and Nevada. And the expansion plans include new and bigger offices in Chicago, Wisconsin, Virginia, Georgia, Texas, Massachusetts, New York, Washington, and California. It will also grow its data centers in Oklahoma and South Carolina.
In addition to keeping up with AWS and Microsoft, the new data centers should boost Google Cloud’s enterprise business — a lucrative sector that that tech giant has been aggressively courting over the past few years. On the company’s most recent earnings calls last week, Pichai touted milestones hit by its cloud business, including doubling its contract wins in 2018 in excess of $1 million.
And during a presentation at the Goldman Sachs Technology and Internet Conference yesterday, Google’s new cloud boss Thomas Kurian said Google Cloud will “accelerate the growth even faster than we have to date.” The company will focus on individual industries like financial services and work more with channel partners, he added.