Bandwidth Inc. plans $103.4 million capital expansion, new headquarters in Raleigh

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bamdwidth inc website
the Bandwidth Inc. website

Communications software company Bandwidth Inc. plans to create at least $103,426,500 in capital investment by expanding its Raleigh headquarters, North Carolina Commerce Secretary Anthony Copeland says.

“Though the current (COVID-19) backdrop is highly challenging for everyone, the Commerce Department is proud to continue carrying out its mission – and that includes helping companies execute strategic growth plans that involve North Carolina,” Copeland said in an April 7 statement. “Today’s announcement by Bandwidth showcases the resiliency and reliability of our state and its renowned economic assets – especially our tech-savvy workforce.”

The company, currently located on N.C. State University’s Centennial Campus, plans to move its headquarters to land in west Raleigh that’s been owned by the state. The Council of State, comprised of statewide elected leaders, separately agreed Tuesday to sell about 40 acres to the business  for around $30 million, the Associated Press reports.

The land deal will create thousands of parking spaces for a new state Agriculture Sciences Building under construction, the published report says.

Bandwidth Inc. connects businesses and consumers with a communications platform as a service. Its services are used by major companies including Google, Microsoft, Cisco and Zoom. The fast-growing company reported $232.6 million in revenue for 2019, an increase of 14 percent from 2018. Bandwidth has been based in Raleigh since its founding 20 years ago, and its workforce currently totals more than 750. It also has significant operations in Denver CO, and Rochester NY.

“As an essential nationwide service provider of 911, voice calls and text messages headquartered here in North Carolina, we are proud to have kept up with the unprecedented levels of demand for communications services during this season,” said Bandwidth’s CEO and founder David Morken.

“We’re enabling a more connected world at a time when people everywhere need it most.  Our mission is critical, and we remain steadfast in continuing to execute on that mission for the people of North Carolina and all Americans. We are proud to be North Carolina raised!  Today’s announcement allows us to establish even deeper roots in our vibrant community that will support our growing customers and our flourishing team.”

Bandwidth’s North Carolina expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. Using a formula that takes into account the new tax revenues generated by the 1,165 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $32,279,250 over 12 years.

“Even though this is a challenging time for the residents of Wake County, the announcement from Bandwidth signals confidence and support of our community,” said Greg Ford, Chairman of the Wake County Board of Commissioners. “We look forward to what this announcement means for the long-term success of Wake County.”

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