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Google pauses construction of 80-acre San Jose campus due to tech industry downturn

Google was approved to build the campus in 2021, but it has been put on hold indefinitely as the company continues to cut costs.

TJ Denzer

April 21, 2023 2:35 PM

Image via Shutterstock

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With Google having had some down quarters and looking to cut costs in various corners of the company alongside many of the tech giants, it has also paused development of a new campus in San Jose. Google was working to develop an 80-acre plot of around 7.3 million square feet of office space into a new campus, but the company has recently put a pause on the project and rumor is it will not resume the project in the foreseeable future.

Word of the hold on Google’s San Jose campus was reported by CNBC, which was in contact with representatives close to Google and its San Jose campus project. The campus project was approved for construction in 2021, allowing Google to begin the processing of developing the 80-acre plot of land. Google got as far as completing the initial demolition of the area to set up the initial stages of building.

When plans were in action, the campus was planned to create thousands of new housing units and 15 acres of public parks at the estimated economic impact of $19 billion USD. Unfortunately, as of the project’s discontinuation, it is simply a demolition zone and could remain that way for the long term. According to sources close to the project, Google has no plans in the near future to continue the project under current economic conditions. It’s also part of Google’s recent efforts to cut costs heavily, including that of office space. Google even went as far as to cut office supplies including PCs, monthly services, and even staplers.

With the San Jose campus discontinued, it looks like the city may be left holding the bill for Google’s sudden pull-out. As we continue to follow for new details, stay tuned here at Shacknews for further updates.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.