Why is Google preparing to invest in offices in 2022?

According to Sundar Pichai, CEO of Google, the company must invest in new offices at all costs. What are the real motivations for this? Does this have anything to do with Google’s massive adoption of hybrid working lately? We talk about it.

Google ramps up office spending

$9.5 billion. This is the sum that Google is preparing to spend for this year alone. This substantial amount would be deployed in the acquisition of new data centers and offices in the United States.

The intensification of its investments in physical offices seems to contradict Google’s current strategy. Indeed, according to Sundar Pichai, Google today wants to be more flexible in the way it works. However, the American giant remains fixed on the importance of investing in its campuses. In a blog post, the CEO says this initiative will “to achieve better products, a better quality of life for Google employees, and stronger communities.”

Google’s spending on building physical infrastructure in the United States has long been close to $37 billion. This figure corresponds to five years of charges. However, it is necessary to take into account the desire of the company to have more offices. This ” frenzy “ does not only concern the United States. We must, in this respect, underline the project of a billion dollars concerning Google buildings in London. This news was announced last January.

So why go into offices?

As we navigate the digital age, what does office acquisition represent? Although many entrepreneurs disagree, having a meeting space where connections are made is essential. According to Google, people do indeed need these exchanges with their colleagues. The company also admits to expecting the occurrence of various errors over the next two years. Admittedly, it is taking a step in terms of hybrid work with Google Anthos. However, it is also important to understand the real meaning of these words: flexible ” and ” hybrid “. In addition, a physical location is not only a place where employees gather, it is a physical representation of the power of the company.

This vision, Apple also seems to share it. This is what prompted him to open Apple Park in 2017. More than a workplace, this headquarters is the international symbol of the company. These 70 hectares of infrastructure can accommodate up to 12,000 individuals. However, Steve Jobs thought otherwise. He chose to set up a 1,000-seat amphitheater there, a privileged place where Apple announces the brand’s new products. This place also has an innovation center. As Apple CEO Tim Cook mentioned during his inauguration, Apple Park “would be the home of innovation for generations to come”.

This reflects how crucial having a strong real estate footprint is for both brands.

Leave a Comment