Dive Brief:

• Apple announced Wednesday that it will build a second headquarters somewhere in the U.S., according to Apple. The facility's location will be announced later this year.
• This second headquarters will be part of Apple's five-year, $350 billion commitment to the U.S. economy, and will employ a portion of the company's projected 20,000 new workers over that period. The plan recognizes the recent tax overhaul and takes advantage of the provision that lowers corporate tax rates and creates a one-time break on cash being held overseas, reported Curbed.
• Although Apple has not indicated how it will select its second headquarters location, speculation has arisen that it will embark in a bidding process similar to Amazon's in its quest for its new North American headquarters, HQ2.

Dive Insight:

Apple's announcement aligns with the recent trend of "giant companies expanding spaces," as seen throughout much of 2017. Last year, Microsoft announced its intent to begin a multi-billion-dollar redevelopment of its existing Redmond, WA, campus, and Google continued to build out its capacity.

Amazon's search for its second headquarters stole the headlines, though. The online retail giant plans to invest more than $5 billion in the new facility and create up to 50,000 new jobs. The company received 238 proposals and is expected to announce its decision sometime this year.

Theories abound about which city will land HQ2. The latest reports speculate Boston could be a front-runner, although some might argue HQ2 will go to a city with an existing Amazon R&D hub.

Apple's second headquarters is the latest in a string of projects the company is working on. It completed construction of its new headquarters in Cupertino, CA, a 2.8 million-square-foot campus, estimated to cost up to $5 billion. With its ring-shaped main building, some have likened the structure to a spaceship. Features include extensive landscaping and irrigation, a solar roof, two outdoor dining facilities, a visitor center, a secondary office building, parking facilities and the Steve Jobs Theater.

The company also is investing in data centers, including a $1.3 billion data center in Waukee, IA, and doubling the size of its Reno, NV, data center, representing an approximately $1 billion investment.

Apple's intended second headquarters will use a tax code provision to bring $250 billion of offshore cash back to the U.S., creating a $38 billion tax bill for Apple. This isn't Apple’s first foray into finding advantageous tax provisions. The company negotiated deals with Waukee in which it will donate $100 million toward infrastructure improvements in exchange for a $208 million state and local tax break.