Google’s $7 Billion Real Estate Plan for the Coming Year



Recovering From Pandemic Downturns

Google (GOOGL) plans to spend $7 billion on real estate in 2021, mostly in the form of office space and data centers. Last year, Google paused its real estate spending as the pandemic weighed on the company’s balance sheet. Google saw its first-ever year-over-year revenue drop during the second quarter of 2020.

Now, business is picking back up. Google wants to take advantage of the current real estate market to set itself up for success as the world begins to recover from the pandemic.

Planning a Return to the Office

Google plans to bring workers back to offices starting this fall. Google does not plan to offer permanent remote work, and most employees will be expected to come into the office at least three days per week. “Coming together in person to collaborate and build community is core to Google’s culture, and it will continue to be an important part of our future,” said Google CEO Sundar Pichai in an announcement about the company’s real estate investments.

$1 billion of Google’s budget will be invested in California. A number of other large tech companies have divested from California during the pandemic, but Google wants to maintain its presence in its home state. Google is also investing in offices and hiring people in cities like Atlanta and Washington DC in order to ensure that its workforce is geographically and racially diverse.

Google’s Goals for its Cloud Business

Google has big goals for its cloud business in the coming years, so it is making significant investments in data centers. In its most recent earnings report, Google shared that its cloud arm lost $5.61 billion on $13.06 billion in revenue last year.

Though Google’s real estate investments will raise expenses for its cloud business, Google says it is more focused on growth at the moment and will work to make its cloud operations profitable over time.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21031901


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com. Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.


TLS 1.2 Encrypted
Equal Housing Lender