©2016 Michigan Economic Development Corporation

Google Chooses Michigan for Expansion

Tuesday, July 11, 2006

Michael Shore, MEDC
(517) 335-4590

1,000 Jobs in Washtenaw County Expected in First Five Years

Lansing, Mich.-Governor Jennifer M. Granholm and Michigan Economic Development Corporation President and CEO James C. Epolito today announced that Internet giant Google Inc. has chosen Michigan for its newest Internet project. The company plans to make a significant financial investment to locate a major new corporate presence in the Ann Arbor area that will create 1,000 direct and more than 1,200 spin-off jobs in its first five years.

The facility will be a sales and operations center for Google's AdWords online advertising program. The Governor directed the MEDC to go after the new Google project more than a year ago. Assistance offered through the Michigan Economic Development Corporation helped convince Google to choose Michigan over other potential locations. Granholm said the Google decision is just the latest evidence that her economic recovery plan is beginning to deliver dividends of increased investment by high-tech companies that mean well-paying jobs for Michigan.

"Whether you are a business building engines or a search engine, Michigan is the place you want to be," said Granholm. "We are creating jobs that will allow our young people to stay in Michigan and raise families of their own."

The MEDC approved a High-Tech Single Business Tax credit valued at more than $38 million over 20 years to win the company's investment.

"We're delighted to open a new office in the Ann Arbor area," said Larry Page, co-founder of Google. "We hope to establish as wonderful a home in Michigan for Google as I enjoyed while growing up. Our goal is to have many Michiganians call themselves Googlers."

An economic analysis conducted by the MEDC estimates that increased economic activity created by the expansion will generate 1,245 indirect Michigan jobs in addition to the 1,000 created directly by Google. The project is expected to generate more than $2 billion in personal income for Michigan workers over the life of the tax credit.

"Google plans to begin hiring in Michigansoon, so it won't be long before we see the benefits of this great company's investment," Epolito said. "With operations in major metropolitan areas throughout the world, Google's presence here puts Michigan among an elite class of locations for those companies needing a high-tech workforce."

The regional economic development agency, Ann Arbor Spark, worked in collaboration with the Governor and the MEDC to win Google's investment.

"The decision by Google to locate in the Ann Arbor region is an extraordinary example of the attractiveness of our community-talent, technology, and quality of life-and demonstrates the potential for future growth of innovation based high-tech companies," said Michael Finney, President and CEO of Ann Arbor Spark.

"This is an immensely important opportunity for our university, our students, and our state," University of Michigan President Mary Sue Coleman said. "Google growing in the University of Michigan's backyard will mean more research and discoveries, more opportunities for student engagement, and the potential of new technologies and new jobs. During a 2005 visit to campus, Larry Page told engineering graduates to imagine the big things we can get done in the world-that's what today's announcement promises for our future."

Google was co-founded in 1998 by Sergey Brin and Larry Page, a graduate of East Lansing High School and the University of Michigan.Google's innovative search technologies connect millions of people around the world with information every day. The company serves corporate clients including advertisers, content publishers and site managers with advertising and revenue-generating search services. Thousands of advertisers use the Google AdWords program to promote their products and services on the Web.As of March 31, 2006, Google employed 6,790 full-time employees throughout the Americas, Europe and Asia.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the Michigan Economic Development Corporation's initiatives and programs, visit the Web site at www.michigan.org.


Google Inc.
Economic Analysis
Summary Estimates
(All estimates in 2006 dollars)












Revenue Foregone


 Revenue Gain



Average Weekly Wage


Personal Income Generated Over Life of 20-Year Tax Credit Agreement          

$ 2,147,376,000

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