Apple Plans $1 Billion Expansion at Its Nevada Data Center

Apple publicized on May 10 that it intends to roll out $1 billion to expand its colossal tech campus on Reno’s east, magnifying its outlay and approximately multiplying its workforce by three at the data center. The news should not come as a surprise given the mega company’s May 2 release of its fiscal 2017 second quarter financial results with revenues of $52.9 billion compared to revenues of $50.6 billion in the year-ago quarter. International sales accounted for 65 percent of the quarter’s revenue.

The Nevada announcement also comes hot on the heels of news that Reno’s City Council had sanctioned Apple’s intentions to construct a $4 million receiving and shipping warehouse in Reno’s downtown area rendering it entitled to tax breaks worth millions. Back in 2012, when Apple first invested in the data center, it received $89 million in state property and sales tax cuts.

According to reports by The Associated Press, Apple spokesman John Rosenstock said that the company is thrilled at the prospect of aggregating its help to the local economy with a supplementary investment of $1 billion to support facilities and grow its data center. He added that the company’s progression includes plans to employ 100 workers and hopes building will provide another 300 jobs.

In a statement Wednesday, Nevada’s Gov. Brian Sandoval described Apple’s intentions as northern Nevada’s foremost financial expansion accomplishment yet. It would help put the area on map of innovation and technology. He added that the decision by Apple to up its local outlay to $1 billion is evidence of an efficacious collaboration and evidence that world’s finest corporations are being attracted to the area.

This will create jobs for hundreds of people who will invest in Nevada’s neighborhoods and make the state their enduring place of residence.
The positive response has not been across the board. According to Reno’s Gazette-Journal City, Jenny Brekhus, Councilwoman who contradiction the land deal, demanded that biased tax deals come to an end. She said the deals are only given to a few well-connected and dominant organizations. However, Councilman Paul McKenzie and Mayor Hillary Schieve responded that the entire city would profit from the expansions. McKenzie commented that not only does Apple pay, but they provide a living wage.

Last week Apple also announced that it was setting up a $1 billion fund in the U.S. to boost more manufacturing jobs. This forms part of its strategy to highlight its role in the U.S. economy, with the company concurrently releasing a state-by-state breakdown of where it’s 80,000 U.S. employees work — more than half in California’s Silicon Valley.