Apple to build $1B campus in Austin, increase employment nationwide

Alongside the Texas campus, the company plans new or expanded sites in Seattle, Pittsburgh, Colorado and more over the next three years.

Apple is spending $1 billion to build a new campus for engineering, research and customer support in Austin and is doing so as part of U.S.-wide expansion plans. The new 133-acre campus will initially house 5,000 new staff and together with Austin's existing 6,200 Apple employees is expected to make the company the largest private employer in the city.

"Talent, creativity and tomorrow's breakthrough ideas aren't limited by region or zip code," said Apple CEO Tim Cook. "Apple is proud to bring new investment to cities across the United States and significantly deep our quarter-century partnership with the city and people of Austin. And with this new expansion, we're redoubling our commitment to cultivating the high-tech sector and workforce nationwide."

The new Austin campus, situated a mile from the current one, will continue Apple's policy of being powered by 100 percent renewable energy. In addition to a building ultimately able to house 15,000 people, the site will also feature 50 acres of preserved open space.

Alongside the Austin campus, Apple announced that over the next three years it is planning to enlarge workforces in Seattle, San Diego and Culver City to over 1,000 employees each. It's also intending to expand existing facilities in Boulder, Colo., as well as Boston, New York, Pittsburgh and Portland, Ore.

Apple's projected US employment by 2022 (Credit: Apple)

Apple currently employs 90,000 people across all 50 states, including 6,000 who have been added this year. This year's new hires are part of a five-year plan to add 20,000 jobs in America and contribute $350 billion to the economy.

These figures are to do with direct spending by Apple but the company claims that its work is also enabling a much wider indirect impact on American employment. In all, Apple says it is responsible for the creation and support of two million jobs in the U.S. including employees at some 9,000 supply firms and 1.5 million jobs related to the App Store.

"Apple is among the world's most innovative companies and an avid creator of jobs in Texas and across the country," said Texas Governor Greg Abbot. "Their decision to expand operations in our state is a testament to the high-quality workforce and unmatched economic environment that Texas offers."

Apple also announced plans to invest $10 billion in data centers across the U.S. in a program due to take five years. Presently the existing data centers in North Carolina, Arizona and Nevada are being expanded while a new one is being planned for Waukee, Iowa.

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21 Comments

stantheman 332 comments · 11 Years

About 5 years ago

I imagine many of these new domestic operations will support Foxconn’s new factories being constructed in multiple states. Factories filled with robotic assembly platforms can be located and run from the USA better than almost anywhere else. Foxconn robots replace about 2/3rds of the labor associated with assembling an iPhone, and those robots cost less than the one-year wage of a Chinese worker.

bwik 565 comments · 17 Years

Let's assume Apple revenue declines 5% per year for the next 10 years. Now how much employment growth will there be?

Even expecting the current revenue level 10 years out is a massive task for Apple. It is far from certain.

jellybelly 135 comments · 15 Years

bwik said:

Let's assume Apple revenue declines 5% per year for the next 10 years. Now how much employment growth will there be?

Even expecting the current revenue level 10 years out is a massive task for Apple. It is far from certain.

Apple has a much better track record in forecasting their growth than Wall Street anal-ysts. The quarterly results usually come in between the range of numbers Apple forecast at the previous quarterly investor’s phone call. When quarterly results have disappointed, it’s when they fall short of Wall Street expectations that were too high. It’s pretty amazing how accurate their forecasts are considering the volume they produce and the whims of consumers.

Tim Cook was widely considered a supply chain genius when he was brought in to Apple. He and his team have shown a masterly command of orchestrating unprecedented volumes of production of complex products.

Apple is in the process of building a third campus near the current two main campuses. It’s been discussed by people familiar with Apple expansion in that area, that Apple is planning a fourth campus at an already owned property.
That and the announcement of the Austin expansion with more expansion to come, is a sign to me that they know they need an expanded capacity for future business.
Since new product pipelines can be five or more years, I believe there are products and services that we do not know about, but increased business from them are related to the expansion of workspace and workforce. Keep in mind Apple considers themselves to be a design company. The long pipeline is design driven.
I do hope the doom and gloom folks have egg on their faces with the next quarterly report.
Stantheman—these expansions are not Foxconn related. Foxconn has made their own announcements, not Apple.

airnerd 688 comments · 13 Years

Glad to hear it! Austin is perfect for Apple and Apple is perfect for Austin. More jobs, more ideas, and more innovation is never a bad thing. I trust Apple leadership to not throw money away and they must see a path to a positive ROI in these new campuses, and will continue to trust them until they show me a reason not to.

nightwatch 51 comments · 9 Years

Maybe I can get my old job back on 183 or at the new campus. Hmm..