Google buys 40 acres of farmland in Silicon Valley to grow trees for its campuses

Google has purchased 40 more acres of land in Silicon Valley, but it’s not to build more office space.

The Alphabet-owned company spent $2.1 million on 40 acres of land in Gilroy, Calif., according to a recent report by the San Jose Mercury News. The intent is to use the property as a tree farm to produce foliage for its existing and new campuses, a company spokesperson told CNBC.

The latest purchase comes as the company prepares to build its massive, second headquarters in San Jose, Calif., which will span 6 million square feet and includes about 15 acres of parks and green space. The project, whose plans will be finalized in December, is expected to house 20,000 employees.

It also comes as Google’s expansions have caused tension among community residents who fear the company’s growth will add to an already tight housing supply. Google already has several Silicon Valley offices including in San Jose, Mountain View and San Francisco.

Since the company announced its San Jose campus plans in 2017, it has spent more than $400 million buying up real estate in the San Jose and more than $250 million in Mountain View, according to data from the Silicon Valley Business Journal.

The company planned to spend $13 billion on new offices and data centers in the U.S. in 2019 alone, with most of that growth outside of the Bay Area.