Google is looking at a major expansion in downtown San Jose, 15 miles south of main campus

Key Points
  • Google needs more office space and employee housing to keep pace with future growth.
  • The company won the right to negotiate with San Jose for a new development of between 6 million and 8 million square feet.
  • Google has also been buying up prefab housing for workers amid a Silicon Valley housing shortage.
Google Inc. offices
Michael Short | Bloomberg | Getty Images

Alphabet wants to expand its Silicon Valley footprint in a big way after winning the right to negotiate with San Jose, California, for large tracts of land just west of the city's downtown.

If Google buys the parcels, it plans to build a campus of buildings with between 6 million and 8 million square feet of space for offices and worker housing near a commuter train station.

Google, based in Mountain View near the northern edge of an area that's home to many of the world's largest tech firms, is looking 15 miles south for space as it struggles to keep up with its growth plans amid a severe regional housing shortage.

It's even spent $30 million to bring in prefabricated housing from elsewhere for its workers.

On Wednesday, the San Jose City Council voted 10 to 1 to give Google exclusive negotiating rights on a prospective deal for 16 tracts of city-owned property near the city's convention center and a pro hockey arena.

The company and its partner in the proposed transit hub, real estate giant Trammell Crow, have already spent more than $100 million buying up parcels in the area, the report said.

Google plans to house thousands of workers in the development, according to a memo prepared for the city council meeting, the San Jose Mercury News reported.

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