Google set up its first overseas office in Japan in 2001, and ever since, Google has been actively working on the front to expand its far east market. Now on October 7, 2002, the CEO of Google, Sundar Pichai, announced that Google further plans to invest $690 Million in Japan through 2024 to capitalize on the expansion in the Asia-Pacific region despite macroeconomic uncertainty.
Pichai announced the commitment in an exclusive interview with Nikkei and TV Tokyo in Tokyo, saying that Google will invest a total of 100 billion yen beginning this year and continuing for [the] three years until 2024.
The corporation plans to use the funds to construct its first data center in Japan, invest in submarine cables, and train new employees. The facility is scheduled to go live in 2023, and Google aims to build it in Chiba Prefecture, which is close to Tokyo.
Pichai also stated that Google’s goal in the cloud computing market is to aid Japanese businesses in their efforts to digitally transition, which is good news for both customers and the company’s bottom line. He believes Google can take the lead in the digital transition and expressed his optimism about the company’s future.
Pichai’s comments come as the corporation is speeding up its efforts to streamline operations in anticipation of a slump in the economy. Because of the rise in demand for Google’s services in the wake of the COVID-19 epidemic, Alphabet increased substantially. However, the company’s earnings have dropped for two consecutive quarters (April-June) due to inflation and other variables. As in July, though, the company has slowed down its hiring efforts till the end of the year.
Google is currently reacting to the current economic climate. They factor in the correlation between ad spending and economic growth as a commercial consideration. Google plans to slow down on hiring in 2023 compared to 2022 but will still hire for essential positions like product managers and software engineers.
The cloud-based video game distribution service Stadia, developed by Google, will no longer be available. Area 120, its research and development arm, will also be reduced in size. New cell phones and other products were among the announcements made by the firm on Thursday. Pichai also updated the press on Google’s plans to release the new Pixelbook, the company’s upcoming laptop.
Pichai stated that Google would maintain its targeted investments in emerging technologies such as AI. He also noted that Asia would play an increasingly crucial role for the company in the future as they project forward over the next decade in light of the search engine giant’s expectation of massive growth in Asian markets due, in part, to the proliferation of superapps for digital services and short video platforms.
Additionally, by the year 2023, Google hopes to have opened its first data center in Japan. As part of its $730 million infrastructure fund that will run until 2024, the business has announced that a data center would be built in Inzai City, Chiba. After Taiwan and Singapore, this is the company’s third data center in Japan.
Sundar Pichai stated emphatically in the interview that Asia will experience a tremendous digital change led by Google due to Google’s emphasis on Google Cloud. Google is confident to invest $690 Million in Japan in hopes of long-term success in Asia because the region is poised to become a major market shortly.
If the plan for Google to invest $690 Million in Japan doesn’t fall through, Japan will at least be happy with the Gboard Bar, a physical keyboard with a unique design in which all of the keys are in a single row. Google Japan claims its new keyboard offers several advantages, the most notable of which is a shortened search time while entering text. ♦
Edit: Factual correction to $600 edited to $690 Million.
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