In a blog post, Google CEO Sundar Pichai said the search engine giant is looking to spend $13 billion on new data centers nationwide, including Nevada, Ohio, Texas, and Nebraska.
“With this new investment, Google will now have a home in 24 total states, including data centers in 13 communities. 2019 marks the second year in a row we’ll be growing faster outside of the Bay Area than in it.,” Pichai wrote.
It’s a move that highlights the latest spending spree by Google, which doubled its capital expenditures last year. The extra data centers will help boost the company’s cloud computing division, which will compete with similar technology from the likes of Amazon and Microsoft.
It’s a plan that Pichai said will also help create thousands of construction jobs.
“These new investments will give us the capacity to hire tens of thousands of employees, and enable the creation of more than 10,000 new construction jobs in Nebraska, Nevada, Ohio, Texas, Oklahoma, South Carolina and Virginia,” Pichai noted.
Related: Google’s New Smart Home Hub: What You Need to Know
Earlier this month, Google bested fourth-quarter earnings expectations. However, capital expenditures exceeded $7 million while the company reported an operating margin of 21 percent, which was lower than the 22 percent expected.
The full-year operating margin also fell by 2 percentage points compared to the same time last year.
Final earnings report figures:
- Earnings: $12.77 per share versus $10.82 according to Refinitiv consensus estimates
- Revenue: $39.28 billion versus $38.93 billion according to Refinitiv consensus estimates
- Traffic acquisition costs: $7.44 billion versus $7.62 billion according to StreetAccount
The company grew revenue in other areas, such as its Google Cloud Platform.
“Last year we more than doubled both the number of Google Cloud Platform deals over 1 million as well as the number of multiyear contracts signed,” Pichai said. “We also ended the year with another milestone passing 5 million paying customers for our Cloud collaboration and productivity solution G Suite.”
For more market trends, visit ETFTrends.com.