Apple to build new Austin headquarters campus, expand around U.S.

/ AP

Backlash over costs of Amazon HQ2 locations

AUSTIN, Texas – Apple will build a $1 billion campus in Austin, Texas, break ground on smaller locations in Seattle, San Diego and Culver City, California, and over the next three years will expand in Pittsburgh, New York and Colorado.

The tech giant said Thursday that the new campus in Austin, less than a mile from existing Apple facilities, will open with 5,000 positions in engineering, research and development, operations, finance, sales and customer support. The site, according to Apple, will have the capacity to accommodate 15,000 employees.

The three other new locations will have more than 1,000 employees each.

Early this year, Apple said that it would make more than $30 billion in capital expenditures in the U.S. over the next five years. In January, the company said it would create more than 20,000 new jobs at existing and new campuses that Apple planned to build.

Austin already has 6,000 Apple employees in Austin, its largest operation outside of company headquarters in Cupertino, California, where 37,000 people are employed.

"Apple has been a vital part of the Austin community for a quarter century, and we are thrilled that they are deepening their investment in our people and the city we love," said Austin Mayor Steve Adler in a prepared statement Thursday.

Apple said nearly a year ago that it would begin canvassing the U.S. for another campus.

Not the Amazon model

Cities offered incentives to lure the company, but CEO Tim Cook avoided a high-profile competition that pitted them against one another as Amazon did over the last 18 months.

Amazon announced in November that it had selected Long Island City, Queens, and Arlington, Virginia, as the joint winners. Each site will employ around 25,000 people.

Cities are eager to bring in more tech employers because companies like Apple and Amazon ladle out six-figure salaries to engineers and other skilled workers.

The infusion of thousands of new and highly paid residents can ripple through an economy, with those employees filling restaurants, theaters, buying property and paying taxes.

Annual pay will vary at the new locations, but Apple workers in Cupertino have an average annual salary of about $125,000, according to a report the company submitted to the city.

First published on December 13, 2018

© 2018 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

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