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Yahoo! to Build Data Center in WNY

Jun 30, 2009
Press Release

Yahoo! Inc., will build a new data center in Lockport, Niagara County. Through an agreement with the New York Power Authority (NYPA), Yahoo! plans to invest tens of millions dollars in the construction and computer equipment fit-out of its new East Coast Regional data center. The project is expected to create up to 125 full-time jobs across the State, with additional construction-specific jobs during the multi-year facility construction phase.

“Yahoo!’s decision to locate a data center in Niagara County solidifies New York’s position as a leader in the New Economy,” Governor Paterson said. “This investment will create new job opportunities, help to develop the local economy and also attract other tech industries to the area. We are pleased to welcome Yahoo! to New York.”

Congressman Brian Higgins said: “Western New York’s access to hydropower makes this announcement possible and this region’s future hinges on our ability to see much greater benefits from this unique resource moving forward. Our lake, that feeds our river, that drives the Niagara power plant, holds great potential to replicate economic development and job success stories like this in Western New York again and again, but to do this we must be given the opportunity to reclaim what is naturally ours.”

David Dibble, Executive Vice President, Service Engineering & Operations, Yahoo! said: “We are extremely pleased to be building our next U.S. data center in Lockport. New York State and the greater Buffalo area possess all of the resources required to run a world-class data center that uses leading edge technology to drive new milestones in energy efficiency. Everyone we have worked with – from Governor Paterson and Senator Schumer, to the New York Power Authority, Buffalo Niagara Enterprise, the Town of Lockport, and Empire State Development – has  been supportive in understanding Yahoo!’s needs and in moving this project forward.”

U.S. Senator Charles E. Schumer said: “Today we have scored a big win for Western New York. The 125 jobs are important, but if this works as planned, Yahoo! will be a lighthouse in Western New York, saying to high tech companies ‘come, we have a lot to offer.’ If Yahoo! locates here, high tech companies all over the world will realize what we have to offer – our well educated, talented and affordable workforce, our high quality of life – and want to locate here.”

The Yahoo! data center will receive an allocation of 10 megawatts of low-cost hydropower from NYPA for the first phase of construction, which is expected to begin in the fall of 2009 and allow the facility to be operational in January 2011. A second phase of the project, expected to start in the spring of 2012, would potentially include tens of millions in additional investments from Yahoo! for Western New York. In return, Yahoo! would receive an additional five megawatts of NYPA hydropower.

At the urging of Governor Paterson, NYPA actively worked to secure an agreement with Yahoo!. The NYPA Board of Trustees voted unanimously in favor of the first phase of the proposal on May 19, 2009, and Yahoo!’s Board of Directors accepted the proposal from NYPA on June 25.

Under Governor Paterson’s leadership, NYPA has been a driving force in helping Western New York’s economy. In the last year alone, NYPA has secured agreements with 15 companies that will bring to the region over 1,000 jobs and spur investments of over $400 million. The new Yahoo! data center would host properties, advertisements and content found on Yahoo!’s web portal.