Apple announced last month that a new $1-billion campus will be built in north Austin, Texas. This second campus, located less than a mile from its existing facilities, will span 133 acres, 50 of which is preserved open space. Like all Apple facilities, its workspaces will be powered by 100-percent renewable energy.

“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. “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.”

The new Austin Apple will initially house 5,000 employees, with the potential for 15,000, a move that was celebrated by state and local politicians.

“Apple is among the world’s most innovative companies and an avid creator of jobs in Texas and across the country,” said Texas Governor Greg Abbott. “Their decision to expand operations in our state is a testament to the high-quality workforce and unmatched economic environment that Texas offers.”

Apple applied for a $25-million grant from Texas, payable over 15 years, as well as property-tax rebates from Williamson County which would be in the tens of millions of dollars over 15 years, according to sources close to the negotiations.

Apple follows other tech giants expanding beyond the West Coast. After a yearlong “bake off” contest considered by some an ill-advised PR stunt, Amazon announced in November that it would divide its second headquarters between sites in Queens, New York and Northern Virginia. Eager real estate investors immediately began snapping up property in the surrounding area. However, the announcement was soon met by some local opposition, citing concerns that, while the move would generate approximately 25,000 new jobs, that it would drive up the cost of living and price out local residents. The opposition grew to a boiling point and Amazon pulled the plug, citing that the lack of support would prove the move to be difficult as those relationships were required in order to make it work. While many locals celebrated this win as a David vs. Goliath victory, the change of plans did leave local real estate investors and many state government officials reeling, many of whom have since asked Amazon CEO Jeff Bezos if he might reconsider-a move that is unlikely.

Unlike Amazon’s highly-publicized search for another HQ, Apple’s been relatively quiet about their expansion plans. Last year, it opened its own new $5 billion headquarters in Cupertino, California.

*Amazon’s Cupertino, California headquarters*

Apple emerged as one of the biggest beneficiaries of changes in the new tax code in January, which allowed for a one-time repatriation of corporate cash held abroad at a lower tax rate than what would have been paid under the previous plan. Apple used that to bring back $252 billion into the United States. It also pledged to invest more than $30 million in the U.S. over the next five years by expanding existing operations and adding a new campus.

Those expansions include establishing new sites in Seattle, San Diego and Culver City and to expand in cities across the United States including Pittsburgh, New York and Boulder, Colorado over the next three years, with the potential for additional expansion elsewhere.

Apple's Austin, Texas Expansion & Amazon's Challenges Explored