Apple will splash out $1 billion on new Austin campus
15 December, 2018, 14:12 | Author: Kevin Carter
Apple unveiled plans Thursday for a $1 billion campus in Texas that will create jobs for the tech giant outside Silicon Valley. Apple plans to open three new offices that will each employ at least 1,000 workers in Seattle, San Diego and Culver City, California. Its new campus will be located less than one mile away from Apple's existing offices.
The new North Austin campus will span 133 acres and initially accommodate 5,000 employees, eventually increasing to 15,000.
The Austin expansion will continue Apple's trend of building offices that run entirely on renewable energy.
The Austin Business Journalreports that the Texas capital is the second-largest hub for Apple outside company headquarters.
Apple added 6,000 American jobs in 2018 and now employs 90,000 people in all 50 states.
Apple, maker of all things "i" - iPhone, iPad, I don't even know - is embarking on a massive expansion in the Austin area.
The news of Apple's United States expansion came as Microsoft bought up 130 hectares of land in Sweden, paying two municipalities a total of $29.6m for the two plots. It will cost the company $1 billion to build it.
Cities around the country offered financial incentives in an attempt to land Apple's new campus, but Cook avoided a high-profile competition that pitted them against one another, as Amazon had before deciding to build huge new offices in NY and Virginia.
Apple Chief Executive Tim Cook, who pointedly said his company would not engage in a "beauty contest" pitting one region against another, on Thursday issued a statement that said the planned USA expansion was "redoubling our commitment to cultivating the high-tech sector and workforce nationwide".
It will be used for a wide variety of tasks, including engineering, R&D, operations, sales, and more. Austin was named to Amazon's list of 20 finalists but lost out to sites in NY and Virginia, which pledged incentive packages valued at $1.7 billion and $573 million, respectively, for the promise of 25,000 Amazon jobs each and billions of dollars in investment.
"I'm happy to welcome Apple to America's Finest City", San Diego Mayor Kevin Faulconer said.
No mention was made of Raleigh or Research Triangle Park, although the news release did say there was the "potential for additional expansion elsewhere in the USA over time". All in all, Apple is aiming to create as much as 20,000 new jobs by 2023. The company is expanding its data centers in North Carolina, Arizona and Nevada as well, and opening a new location in Iowa.
Apple could be getting some incentives for the Austin expansion in the form of a $25 million grant from the Texas Enterprise Fund, a source familiar with the matter said.
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