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(Bloomberg) -- Software firm ServiceNow Inc is planning a major expansion in West Palm Beach and has explored relocating its headquarters there from Silicon Valley, according to two people familiar with the idea, boosting the South Florida city’s status as a nexus of money and power.
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On Thursday, the people told Bloomberg that ServiceNow was planning to move its headquarters to West Palm Beach, eventually creating thousands of jobs in the city. The people cautioned that the plans could still change.
On Friday, a company spokesperson confirmed it was exploring an expansion while keeping its corporate base in Santa Clara. “ServiceNow is considering West Palm to support our global growth and future workforce expansion,” the spokesperson said in a statement. “A range of potential expansion opportunities are in consideration including basing a substantial portion of our Americas operations from there.”
ServiceNow, which employs 26,000 people and makes applications that help companies organize and automate their personnel and information technology operations, plans to move hundreds of people at first, hiring thousands in the long term, the people said. The major investment is a milestone for an area that’s traditionally been known as a playground for the ultra rich, rather than a hub for technology and innovation.
ServiceNow establishing a significant presence in Palm Beach County would be a big win for the area known as “Wall Street South” for the finance firms that have set up shop there in recent years.
Palm Beach has benefited from a flurry of activity from business leaders coming to President Donald Trump, including Apple Inc. Chief Executive Officer Tim Cook and Amazon.com Inc. Chairman Jeff Bezos who have dined with the president at his Mar-a-Lago residence. Meanwhile technology companies from Meta Platforms Inc. to Salesforce Inc. have taken steps to align with policy goals and values promoted by the second Trump administration.
ServiceNow is a major vendor of software to the federal government. Such contractors have been on high alert for impacts from cost-cutting efforts within the government. Like many peers, ServiceNow has positioned its software as a tool to help the government reduce expenses.
“DOGE loves us,” CEO Bill McDermott said when asked about the potential impact of Elon Musk’s cost-cutting initiative, the Department of Government Efficiency.