(WEB HOST INDUSTRY REVIEW) — The New York Power Authority (www.nypa.gov) voted unanimously in favor of a proposal designed to build a Yahoo! (www.yahoo.com) data center in Western New York, Governor David A. Paterson announced in a press conference Tuesday.
Yahoo! revealed last week that the company was in talks with US Senator Charles Schumer to build a data center as large as 60,000 square feet in Western New York.
If the proposal is accepted by Yahoo!’s board of directors, the company would invest at least $150 million in building the data center and generate 125 new high-tech jobs in Western New York.
The proposal follows more than six weeks of negotiations between Yahoo! and the Governor’s office.
New York State expects to secure Yahoo!’s commitment to invest in Western New York rather than in competing sites in other states.
Although it has not been officially determined, the new data center is expected to be constructed in either Niagara or Genesee Counties.
Yahoo! says the average wage and benefits of the new jobs that would staff the data center will be approximately $65,000.
“Yahoo!’s interest in Western New York confirms that New York State is open for business. We can and will continue to attract high-profile industry to our State, providing high-wage job opportunities for New Yorkers,” says Governor Paterson. “Attracting this world leader in high-technology would help Western New York diversify from its traditional industrial base, and act as a catalyst for drawing other new economy companies to the State and region.”
The NYPA would allot 10MV of low-cost hydropower for the Yahoo! data center for the first phase of construction, which could start as early as this fall and go online in January 2011.
For the second phase of the data center, which is expected to be completed in the spring of 2012, Yahoo! would potentially invest tens of millions of dollars in exchange for an additional 5MW of NYPA hydropower.
The Governor Paterson-led NYPA has been huge factor in boosting Western New York’s economy, securing agreements with 15 companies that will generate over 1,000 local jobs and investments of over $400 million in the last year alone.
“We are continuously evaluating new ways to best support our business needs and we are in a dialogue with various state officials about our potential options,” said Yahoo! in a statement addressing the proposal approval. “New York State officials and the Governor’s office have been very supportive in helping us evaluate our options in New York State, and we’re pleased to learn of the New York Power Authority’s vote, but we do not disclose information related to ongoing discussions.”
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