An existing Google office in New York. Photo: Bryan R. Smith/AFP/Getty Images

Google announced Monday it plans to spend $1 billion and lease three new properties as it expands its New York City presence.

The bottom line: With the new investment — and the $2.4 billion purchase of Chelsea Market earlier this year — Google says it will have the capacity to more than double its New York workforce, already at more than 7,000 workers.

The bigger picture: Google's straightforward move, like the Austin-area expansion Apple announced last week, contrasts with the reality-show contest Amazon held to decide where to locate its next major U.S. offices.

  • Google says its New York expansion is part of a broader effort to expand its U.S. operations. It added that it is now growing faster outside the San Francisco Bay Area than it is within its home region, with new offices and data centers opened this year in places such as Detroit, Boulder, Los Angeles, Tennessee and Alabama.

By the numbers: Amazon is creating far more jobs in New York, 25,000 in the next decade versus, say, 7,000 for Google. But Amazon is also getting nearly $3 billion in subsidies. Google did not get any tax benefits or economic incentives in conjunction with its New York expansion, a source with knowledge of the deal said.

What they're saying: "When we came to New York City almost two decades ago, it was our first office outside of California," Ruth Porat, CFO of Google parent Alphabet, said in a blog post. "It’s now home to more than 7,000 employees, speaking 50 languages, working on a broad range of teams including Search, Ads, Maps, YouTube, Cloud, Technical Infrastructure, Sales, Partnerships and Research."

Editor's note: This story has been updated with more information regarding the lack of tax breaks for Google in its expansion plan.

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