The company had been considering Research Triangle Park for a new campus as well as an expansion of its current data center complex in western North Carolina, according to several sources.
Some North Carolina officials said they were shocked and stunned by the news while others were mum about the impact on North Carolina as a possible Apple destination.
“I am shocked,” said Wake County Commissioner Sig Hutchinson. “I thought Apple was coming to the Triangle, to Raleigh. “Apple and the Triangle fit hand-in-glove,” he added, noting the region’s workforce and recognition as a tech hub. “I am stunned. This is where Apple needs to be!”
State officials appear to have been blindsided by the news and are scrambling to determine precisely what went wrong and unwilling to discuss the news for now, according to WRAL Statehouse Reporter Travis Fain.
House Rules Chairman David Lewis said that “everybody is shocked, and very disappointed.”
At an economic development conference, Gov Roy Cooper said his administration is still trying to figure out what this means and what about future announcements, according to WRAL’s Cullen Browder. He notes that the state has lost some projects but is still a destination for business projects.
Senate leader Phil Berger’s spokesman Pat Ryan told Fain: “There will be no comment until we hear from Apple.”
David Rhoades of the North Carolina Department of Commerce, added: “We are aware of the media reports. We have nothing further to offer.”
Scott Levitan, CEO of the Research Triangle Foundation which operates RTP, said he had “no comment.”
An announcement of an expansion in North Carolina worth well over $1 billion and creating several thousand jobs had been expected in June.
For the moment, the announcement is a big blow to North Carolina’s hopes for economic development linked to high tech. The Triangle also lost out on Amazon’s HQ2 project and its 50,000 jobs. RTP was among the 20 finalists, but Amazon chose to split HQ2 between suburban Washington, D.C. and the New York City metro area.
Raleigh also lost out on a new Army headquarters that could have been built on N.C. State’s Centennial Campus. That project also is going to Austin.
The news surprised Dr. Mike Walden, an economist at N.C. State.
“I am surprised Apple did not choose the Triangle,” Walden told WRAL TechWire.
“But Austin is a major competitor, so losing to that area gives us some solace.”
Walden added that why Apple chose Austin must have come down to several “details.”
“Austin and the Triangle have similar characteristics,” he explained. “So the decision may have come down to details like land costs, the specific location, and proximity to amenities.”
THE DETAILS
“Apple is proud to bring new investment, jobs and opportunity to cities across the United States and to significantly deepen our quarter-century partnership with the city and people of Austin,” said Tim Cook, Apple’s CEO, in the announcement which was made early Thursday.
“Talent, creativity and tomorrow’s breakthrough ideas aren’t limited by region or zip code, and, with this new expansion, we’re redoubling our commitment to cultivating the high-tech sector and workforce nationwide,” he added.
Apple said it will spend $1 billion the campus in North Austin close to its current operations.
WRAL had been told that a campus in RTP would be around that same dollar figure.
However, a graphic posted with Apple’s announcement about future job growth through 2022 shows minimal expansion in North Carolina beyond the workers already at the data campus.
Where Apple will have employees by 2022.
Other new sites for Apple will be created in Seattle, San Diego and Culver City, Calif., Apple said.
Other cities listed for expansion include: Pittsburgh, New York and Boulder, Colo.
Apple did note that there is “potential for additional expansion elsewhere in the US over time.”
THE AUSTIN ADDITIONS
Apple’s plans for Austin sound very much like what sources had said was under consideration for RTP:
- Some 5,000 employees
- Jobs such as engineering, research and development, and customer support
The campus will cover 133 acres and could eventually accommodate 15,000 employees, the tech giant said.
Apple was considering a larger site across undeveloped land that is part of the Research Triangle Park in Wake County, according to sources.
The company already employees more than 6,000 people in Austin, making it the largest campus outside of Apple’s headquarters in Cupertino, Calif.
BAD NEWS FOR NC’S FUTURE?
The losing of the three “A” projects doesn’t mean North Carolina won’t still be on corporate expansion lists.
“Some may look at losing both Amazon and Apple means North Carolina is losing its luster. I disagree,” Walden said.
” Our job growth rate this year will be 30 percent faster than the nation’s. I expect the state’s business recruiting to still be robust.”
