What Google's $7BN Building Spree Means for Construction

A New Strategy
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4 Video Views·Nov 18, 2022
Type Google into Google and you begin to get an understanding of the scale of the firm that now
underpins so much of the way our world runs and the insane extent of its construction activity.
As you might expect, the tech giant now has hundreds of locations worldwide
and it's been snapping up office space at an astonishing rate in recent years.
But that's nothing compared to what it currently has on the go.
From canopy-covered campuses and sprawling data centres to timber high-rises and even
whole city neighbourhoods, this is a construction spree that only the likes of Google could pull off.
But get beyond the scale and you see that it's not just a big company spending big bucks on
its buildings. The firm is using its immense influence and resources to construct in a
sustainable way that promotes cohesiveness and in some cases even grows communities.
Google is cleverly using its might to show the whole world what good construction can look like
and it's time everyone paid attention.
It's a search engine, a map, an email system, a cloud server, an incredibly honest and brutal
restaurant review guide, the owner of YouTube and a handy translation tool.
And it's spent USD $30BN on property in just the last three years.
Now, you could argue that yet more of its cash going on buildings is not exactly noteworthy,
but what Google is doing with its latest round of projects is pretty extraordinary,
especially under the current circumstances.
In just the US and just in 2021, the company is investing more than $7BN into new offices
and data centres. That's despite the pandemic that's seen countless firms scale back on their
workspaces and even Google itself impose remote working until at least September.
A billion dollars is being spent in San Francisco Bay alone,
and new offices are coming online in Atlanta, Washington DC, Chicago and New York,
in some cases snapping up prime real estate that became available during COVID-19.
There's also a wave of new data centres in Nebraska, South Carolina, Virginia, Nevada and
Texas, boosting the capacity of Google's growing cloud business and helping to power all those
internet searches on everything from sourdough bread recipes to Kim Jong-un, both of which were
top worldwide trends in 2020. The firm's data centres are increasingly run more efficiently
and on carbon-free power, as part of its push to be fully carbon-free by 2030.
While little is known about many of these smaller developments so soon after their announcement,
the work underway in Silicon Valley is definitely no secret.
Now finally nearing completion after years of construction are the Charleston East and
Bay View projects close to the company's Googleplex headquarters,
both designed by Bjarke Ingels Group and Heatherwick Studio.
Covering an area of more than 55,000 square metres, Charleston East is described as Google's
first truly bespoke office building. It's said to host about 3,000 employees and is dominated by a
huge aircraft hangar-inspired catenary roof that forms its main structure.
Each section of the canopy is covered with customised PV panels that will generate
around four megawatts of power. The surface also collects rainwater and almost three million gallons
is expected to be reused on the site each year. The office below is like a masterclass in the
modern workplace. It emphasises flexibility and team-working and is arranged over an open
floorplate that's made up of multiple stepped platforms. The whole thing can be adapted and
reconfigured as needs change and there'll no doubt be some ballpits thrown in to achieve
optimum tech company vibe. Just a few hundred metres to the east,
the Bay View campus will offer a similar design and layout but across three buildings.
Located in an area of wetlands, they're each designed to integrate with their natural setting,
while new pathways for walking and cycling will help to make the area less car-centric.
Work could also be starting soon on Google's massive new campus in the adjacent neighbourhood
of Sunnyvale, which was approved by the City Council in May 2020. Extending over more than
90,000 square metres, the complex will have two large terraced buildings with ramped roofs that
link together in a zigzag shape. Designed to promote activity and maximise space, these allow
workers to travel between levels by walking, cycling or rollerblading because apparently
some people still do that. There's also plans to turn it into a mixed-use development in the future
where people live and work. That's all part of Google's growing commitment to housing,
which we'll come on to in a minute. Also in Sunnyvale, another new five-storey
Google office will become the first mass timber building in the area.
1265 Borregas Avenue will have wooden beams and walls as well as a dynamic wood facade for
controlling the amount of heat within the building. In total, it's expected to generate 96%
fewer carbon emissions than a steel building, and its goal is to be LEED Platinum. That's the
highest rating that the US Green Building Council offers. Described as a pilot project, it's expected
to pave the way for more mass timber buildings from the company in the future. Google's extensive
foray into construction is not all about offices and data centres. In fact, it's its work beyond
these areas that's much more impactful and intriguing. Take housing for example. The tech
giants committed to a further $1BN in housing across the San Francisco Bay area and plans are
now in place to repurpose over $750M of the land Google owns here as residential housing over the
next eight years. That'll result in at least 15,000 new homes for people of all different incomes,
not just the company's wealthy execs, and it'll help to address a huge housing
shortage in the region, especially of the affordable variety.
San Jose is one area set to benefit most from the scheme. Currently suffering from the worst
housing-to-jobs ratio of any major US city, Google is planning to bring 4,000 new homes
and some 20,000 workers to San Jose through its new Downtown West development. Crucially,
around 1,000 of these homes are being set aside as affordable housing, but as we know,
that word affordable can have a loose definition. Approved by the City's Council in May 2021,
the phased masterplan will see nearly 7,000 square metres of further office space built,
along with hotel rooms, at least 10 parks and a performance area.
The aim is for the district to be fully net zero and it's likely to be powered by a microgrid
and encourage sustainable modes of transportation.
Construction could get underway as soon as 2022,
and estimates for the project's total duration range from 10 to 30 years.
Google agreeing to pay a $200M community benefit package proved to be key in securing the deal.
That money will ensure existing residents are not displaced
and that they can compete for jobs at the company.
It's a nice gesture, but Google made it in part to secure their development.
In fact, the tech firm hasn't always been that popular here.
In 2019, campaigners demonstrated against the company,
claiming that the flow of highly paid Google employees to the area had pushed up house prices.
It's not the first time that the business has seen its apparent
immunity from obstacles wear off as it enters the difficult world of urban planning and construction.
In 2020, it cancelled a smart city project in Toronto by Sidewalk Labs, a Google affiliate
company. The idea was for a new 12-acre district featuring high-rise timber buildings, self-driving
cars, tunnels for autonomous delivery robots and much more. All great things that speak
to the future of construction and how we'll live. The problem was it would also be teeming
with censors for gathering data and many feared the information would then be sold onto third
parties, raising huge questions about privacy. While that project might have been a mistake,
otherwise there's plenty of positives in Google's current build strategy.
As well as maintaining its focus on employee wellbeing, there's an emphasis on energy-saving,
sustainable materials and on properly integrating with local environments and communities.
Under the biggest of spotlights for corporate social responsibility and in an age where many
employees now expect their employers to be on the right side of global issues they care about,
you could argue that Google has little choice but to approach construction like this.
But even with that said, the example they're setting is undeniably impactful.
Yes, a budget of billions and top architects made all these projects possible, but they stand
as prominent case studies to us all as we plan our world and prepare to build the future.
Perhaps we should ask ourselves, what would Google do?
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