IBM's thousands of Austin employees will be moving to a new campus location in The Domain.

The tech giant said it has signed a lease for about 320,000-square feet in a 500,000-square-foot development designed by Munoz & Albin.

"The project at 11901 N. MoPac Expressway will be a new, next-generation office development close to IBM’s existing footprint in North Austin," the company said in a statement. "We expect to move Austin-based IBMers into the new location by 2027."

IBM, which has 250,000 workers worldwide, does not break out local employment numbers. The Austin Chamber of Commerce estimates the company has about 6,000 local employees. With the new campus, IBM will leave its long-time offices at 11400 Burnet Road and 11501 Burnet Road.

"Austin IBMers represent every aspect of IBM’s business: AI and cloud software, systems, consulting, marketing, sales and communications," a company spokesperson told the Statesman.

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Construction on the project is expected to begin this year. It will feature two 14-story interconnected towers with separate lobbies on top of eight stories of shared parking.

IBM will occupy one full tower with a private lobby and a 12,000 square-foot terrace. It will take two of the six floors in the adjacent tower. Amenities will include a range of outdoor space and common areas such as outdoor sports facilities, fitness centers, retail space and outdoor terraces.

“This is an opportunity to create a modern, new experience for Austin-based IBM employees where they can gather to collaborate and innovate with colleagues and our clients," said Dexter Henderson, IBM's vice president of power commercial business.

Henderson said the new campus will allow IBM to build "an even stronger ecosystem for IBM, our clients and partners."

"We’re excited about being able to continue to showcase our creativity and innovation in North Austin and continue building on our 55-year legacy in this city," he said. "We see Austin as an extraordinary center of talent and this investment will establish an even stronger ecosystem for IBM, our clients and partners."

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The towers are being developed by Houston-based Hines, a global real estate investor and developer. Construction is expected to begin in late 2023. The project, called Hines Domain Northside, will replace a La Quinta Inn and Suites.

Commercial real estate services firm CBRE’s Bo Beacham and John Barksdale represented Hines in the transaction.

How are IBM's Austin plans different from other tech companies?

IBM's plans for a new Austin campus come as many tech companies are pulling back on office expansion as they cut jobs and respond to employees' demands for flexible office schedules.

Meanwhile, many tech companies are slashing jobs as they face slowing sales and uncertain future growth.

Facebook parent Meta late last year reversed plans to lease 589,000 square feet of space at the tower named Sixth and Guadalupe that is nearing completion in downtown Austin. Rather than occupy the space, Facebook said it now plans to sublease it.

Other significant Central Texas employers including Dell Technologies and Amazon have announced widespread layoffs.

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This week, IBM CEO Arvind Krishna said the company plans to pause hiring for roles it thinks could be replaced with artificial technology in coming years.

In an interview with Bloomberg News, Krishna said he could "easily see" up to one-third of the company's non-customer-facing roles being replaced in the next five years.

"These non-customer-facing roles amount to roughly 26,000 workers," he said. "I could easily see 30% of that getting replaced by AI and automation."

This article originally appeared on Austin American-Statesman: IBM to move Austin workers to new campus in Domain by 2027