Google pulls out new Australian HQ at Sydney's White Bay Power Station, 10,000 jobs gone

A woman holds her smart phone, which displays the Google home page, in this picture illustration taken February 24, 2016. Reuters/Eric Gaillard

Google has decided to pull out of negotiations to house new Australian HQ in Sydney's inner-west due to poor public transport. Currently, the tech giant has 1,500 employees in Sydney and aimed to grow the number to as many as 10,000.

The plan may have pushed through if the upgraded transport links to the White Bay area of Rozelle was in place so Google can shift offices from Pyrmont. However, the proposed metro line around the area has not been completed.

New South Wales government explained that the complexity of the project, as well as the timing of associated transport infrastructure, were not able to meet the requirements of the company. The plan to transform the former power plant into a “technology and innovation hub” is still on.

A Google spokesman said the company mutually agreed with the government to end plans to move to the site. The representative said that negotiations between Google and the NSW government have been genuine and productive, but the company came to realise that achieving the plan isn't possible within its timeframe. Google is now looking to move to a new long term home in Sydney.

Former NSW chief executive David Pitchford earlier said development in the site would turn out to be a disaster if there are no new transport links. The company’s spokesman said the company is grateful to the NSW Government and UrbanGrowth NSW for sharing their vision towards White Bay Power Station. Google assured it will stay committed to the Land Down Under by backing up innovation in Sydney and across the country.

Meanwhile, Premier Gladys Berejiklian said she was not embarrassed by Google’s decision. “No, can I say I had an extremely constructive and productive meeting with Google and what really inspired me is they’re absolutely focused on retaining not only a strong presence in Sydney but building that presence,” the Daily Telegraph quoted Berejiklian, who assured that the government continues to work with Google in searching for a new site.

Former NSW premier Mike Baird, in his 2015 speech, stressed the significance of global technology companies headquartered in Sydney. He explained that the NSW has become Australia’s ICT capital and several global tech companies have chosen Sydney as the base for their Australian and Asia Pacific operations. Apart from Google, these companies include SurveyMonkey, Facebook and Twitter. Baird also pointed that the presence of tech companies sends a global signal that Sydney is a place for investment.