Apple to create new $1bn campus in Texas

Apple has announced plans to build a new campus in Austin, Texas.

Austin is already the biggest base for the tech giant outside of California’s Silicon Valley. Apple hires 6,200 employees in the city.

The investment will cost Apple $1 billion (£790 million) for a new 133-acre (0.54 sq km) campus.

Texas is a lucrative area for many tech companies. Facebook (NASDAQ: FB), Google (NASDAQ: GOOGL), IBM (NYSE: IBM), Dell (NYSE: DVMT), Amazon (NASDAQ: AMZN) and Samsung (KRX: 005930) are also big employers in the state.

Chris Green, an independent analyst said: “There’s a lot of computer chip expertise but Texas is also a massive hotbed for the data-centre industry.”

“It also has a reputation for its traditional entertainment media scene as well as social-media development, with lots spurred on by the South by Southwest festival and other technology gatherings that have made Austin their home.”

In January, Apple pledged to create 20,000 new jobs in the US. The tech group currently employs 90,000 people.

Tim Cook, Apple’s CEO, said: “Apple is proud to bring new investment, jobs and opportunity to cities across the United States and to significantly deepen our quarter-century partnership with the city and people of Austin.”

“Talent, creativity and tomorrow’s breakthrough ideas aren’t limited by region or zip code, and, with this new expansion, we’re redoubling our commitment to cultivating the high-tech sector and workforce nationwide,” he added.

Jobs on the new campus will range from engineering, R&D, operations, finance, sales and customer support.

The tech group also plans to increase employment in San Diego, Pittsburgh, New York, Boulder, Boston and Portland, Oregon.

The Texas Governor Greg Abbott said on Apple’s decision to create the new campus: Apple is among the world’s most innovative companies and an avid creator of jobs in Texas and across the country.”

“Their decision to expand operations in our state is a testament to the high-quality workforce and unmatched economic environment that Texas offers. I thank Apple for this tremendous investment in Texas, and I look forward to building upon our strong partnership to create an even brighter future for the Lone Star State.”

Shares in Apple (NASDAQ: AAPL) are currently trading +0.73% (1438GMT).

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.