Another billion-dollar tech company swaps San Francisco for Austin
Another big-time tech company is decamping from the City by the Bay to the City by Town Lake. It may not have the name recognition of Apple or Tesla, but Digital Realty, a multibillion-dollar company specializing in digital data, announced it is moving its headquarters from San Francisco to Austin.
"The central location, affordable cost of living, highly educated workforce and supportive business climate have helped make Texas an epicenter for business activity and technology growth," said CEO A. William Stein in a press release last week.
Digital Realty's new headquarters will be located off of Southwest Parkway, near Mopac, just a few minutes from downtown Austin.
Of the company's approximate 1,300 employees, about 20 percent are based in Texas, though it's still premature to project exactly how many will call Austin home. No cutbacks or layoffs are expected to happen in Digital Realty's other hubs.
Austin also gives the tech giant a chance to strengthen its foothold in Texas. Today, Digital Realty owns more than 30 data centers across the state, encompassing more than 4 million square feet and over 100 megawatts of customer capacity, the company says.
Among those is a connectivity hub the company scooped up in downtown Dallas in 2002. Along with its big move, Digital Realty also announced on January 14 that it "recently expanded upon its initial investment ... at 2323 Bryan Street in Dallas" and is likely to grow its presence in the Big D now that its headquarters are just a three-hour drive down I-35.
"As we continue to make strategic investments to best position Digital Realty for long-term growth, we are confident our expansion in Texas will help us meet the needs of our more than 4,000 global customers, while continuing to deliver value for our stakeholders, employees and the communities we serve around the world," Stein continued.
Digital Realty joins an ever-growing chorus of companies trading sunny California for (also sunny) Texas. In recent months, Tesla, Oracle, and even TikTok have announced plans to grow their local footprint, perhaps unsurprising, considering Austin once again was named the best tech city in the U.S. in November, outranking both Silicon Valley and San Francisco for the second year in row.