Silicon Graphics Subleasing Campus to Google

MOUNTAIN VIEW, CA-Computer hardware maker Silicon Graphics Inc. is subleasing its 500,000-sf Amphitheatre Technology Center campus here to the Internet search engine firm Google Inc.

SGI, which in May announced 400 layoffs (10% of its employees), says it will consolidate its operations onto its Crittenden Technology Center campus also in Mountain View, where it will lease more space. Google, which will relocate its 800 employees to the Amphitheatre Technology Center campus and still have room for future expansion, has not said what would become of its current headquarters at 2400 Bayview Dr.

SGI says it will vacate the Amphitheatre campus in stages beginning this month and complete the relocation by August 2004. The lease transactions are expected to result in a net reduction in SGI’s facilities occupancy costs of $14 to $17 million per year beginning in July 2004. Meantime, it will cost money, according to the company’s SEC filings.