Google pledges to invest $7B and create over 10,000 US jobs

Online giant’s plans follow surge in internet traffic after pandemic restrictions drove more users and advertisers online.

A sign is pictured outside Google offices near the company's headquarters in Mountain View, California, US, May 8, 2019. (File photo)
Reuters

A sign is pictured outside Google offices near the company's headquarters in Mountain View, California, US, May 8, 2019. (File photo)

Alphabet Inc's Google has said it plans to invest over $7 billion in offices and data centres across the United States as it takes on a surge in internet traffic after pandemic restrictions drove more users and advertisers online.

"We plan to invest over $7 billion in offices and data centres across the US and create at least 10,000 new full-time Google jobs in the US this year," Sundar Pichai said in a statement.

Pichai said Google "wants to be a part" of America's economic recovery from the pandemic and is investing in some communities that are new to the company, as well as expanding in others across 19 states.

The announcement comes as Google faces pressure from dozens of US states that accuse the internet giant of abusing its search dominance to eliminate competition.

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Pandemic effect

Google is spending $1 billion in its home state of California. The move comes at a time when many companies are exiting Silicon Valley after the pandemic triggered a broader shift to remote work, making companies reconsider the state's higher operational costs and hefty taxes.

Outside of the San Fransisco Bay Area, Google said it would add thousands of jobs in Atlanta, Washington, DC, Chicago and New York.

The latest investment includes expansion plans for data centres in Nebraska, South Carolina and Texas, the company also said on Thursday.

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

Google's parent company Alphabet last month reported a 50-percent jump in quarterly profit to $15.2 billion as its digital ad business thrived.

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