Google's parent company Alphabet announced that the new campus which will be known as Google Hudson Square will be operational starting in 2020.

Letters spell the word
Letters spell the word "Alphabet" as they are seen on a computer screen with a Google search page in this photo illustration taken in Paris, France on August 11, 2015 (Reuters)

Google's parent company Alphabet said on Monday it was investing over $1 billion in capital improvements to establish a new campus in New York City.

In a blog post, Alphabet and Google CFO Ruth Porat wrote that it is leasing large office buildings in Manhattan's West Village neighbourhood, the centrepiece of a campus more than 1.7 million square-feet large.

The expansion would make the company one of the city's largest commercial tenants and add thousands of jobs in the next years, according to The Wall Street Journal.

The new campus, which should be operational starting i n 2020, will be known as Google Hudson Square and "will be the primary location for our New York-based Global Business Organisation," Porat wrote.

"New York City continues to be a great source of diverse, world-class talent -- that's what brought Google to the city in 2000 and that's what keeps us here," she said.

The company currently employs some 7,000 people in New York.

Earlier in the year Alphabet said it was buying the Manhattan Chelsea Market for $2.4 billion, and planned to lease space at Pier 57.

Source: AFP