Google Inc. signed a 40-year lease agreement to secure space for a very large office complex. The complex will be built on a research center of the federal government near Google’s headquarter in Silicon Valley.
The territory – 1.2 million-square-foot – has fulfilled Google’s vision that was originally laid with the Ames Research Center of NASA in 2005. The center is only 10-minute drive away from Google’s headquarters in Mountain View.
The additional space will be used for thousands of employees, which the Internet giant expected to hire as tries to obtain more profits from online advertising, technology and media.
Google has hired over 17,000 employees during the recent four years. The company has acquired many smaller officers around its headquarters – a 1-million-square-foot campus, which Google purchased in 2006 for $319 million.
The NASA deal sets Google's initial rent for 42.2 acres of land at $3.66 million per year. Google didn't estimate how much it would cost to build the new campus, which will begin construction in 2013 and will include some housing for employees. Google expects to start the final phase of the campus in 2022.
After the 40-year lease expires, the agreement could be extended by as much as 50 more years.
Google hopes the location of its new offices will make it easier to draw on the brain power of NASA's rocket scientists and give it another competitive advantage over its rivals.
The close ties between Google and NASA caused a backlash last year when company co-founders Larry Page and Sergey Brin negotiated an unusual deal to take off, land and park their private jet at a government-managed airport near where the new offices will be built.
Moffett Federal Airfield had been off-limits to most private planes, but Page and Brin got around that restriction by agreeing to pay NASA $1.3 million annually and making a commitment to fly the space agency's equipment on research missions.