On the heels of the frenzied competition between cities for Amazon’s HQ2, Apple announced earlier today that it will also be building a second headquarters somewhere in the U.S.—setting off similar excitement among cities and local leaders.
According to a report in the Associated Press, Apple will be building a second headquarters over the next five years that will employ an estimated 20,000 workers, all part of a $350 billion commitment to the U.S. economy. The company plans to announce the location of the second headquarters by the end of the year.
The plan nods to the overhaul of the U.S. tax code signed into law at the end of 2017. The reform package lowered corporate tax rates and created a one-time break on cash being held overseas. Apple will take advantage of that provision, bringing $250 billion of offshore cash back to the U.S., a move that will create a $38 billion tax bill for the company. “A payment of that size would likely be the largest of its kind ever made,” the statement notes.
There’s no word about the criteria Apple will use to decide the location of the new headquarters, but the big announcement has already raised speculation that it may “pull an Amazon.” Apple’s recently opened campus in Cupertino, California, a $5 billion project designed by Foster + Partners, employs 14,000 workers.
The announcement also notes the company will initially use the new headquarters for technical support staff, and will be “powered entirely by green energy.” Apple will also increase its investment in an advanced manufacturing fund from $1 to $5 billion, and invest $10 billion in new data centers (which the company notes, are all powered by 100 percent renewable power).