Albany, NY – May 19, 2009 – (RealEstateRama) — Governor David A. Paterson today announced that the New York Power Authority (NYPA) has approved a proposal designed to bring Yahoo! Inc., the world’s largest global online network of integrated internet services, to Western New York. If the proposal is accepted by the company, Yahoo! would invest at least $150 million for the construction of a new East Coast Regional Datacenter and create 125 new high-tech jobs in Western New York. NYPA’s Board of Trustees today voted unanimously in favor of the proposal. NYPA took today’s action at the urging of Governor Paterson, and following more than six weeks of negotiations between Yahoo! and the Governor’s office. Yahoo!’s Board of Directors will now consider the offer by New York.
New York State expects to secure Yahoo!’s commitment to invest in Western New York rather than in competing sites in other states. Although a final determination has yet to be reached, Yahoo!’s new facility is expected to be located in either Niagara or Genesee Counties. According to Yahoo!, the average wage and benefits of the new jobs that would staff the datacenter facilities 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,” said 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 Yahoo! datacenter would receive an allocation of ten megawatts (MW) of low-cost hydropower from NYPA for the first phase of construction, which could potentially begin in the fall of 2009 and be operational in January 2011. A second phase of the project, expected for the spring of 2012, would include potentially tens of millions of dollars in additional investments by Yahoo! for Western New York. In return, Yahoo! would receive an additional five MW megawatts of NYPA hydropower.
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 datacenter would host properties, advertisements and content found on Yahoo!’s web portal.
NYPA President and Chief Executive Officer Richard M. Kessel said: “This is an extraordinary opportunity for the region that will bring jobs and financial investment to our State and put Western New York on the map as an attractive community to which high-tech companies should locate. Every job counts when it comes to Western New York, a region of the State that has experienced the loss of too many businesses and residents and that continues to struggle. NYPA will continue to look for opportunities to use its resources to support the revitalization of the Western New York economy.”
Chairman of the NYPA Board of Trustees Michael Townsend said: “This proposal to Yahoo! demonstrates the New York Power Authority’s commitment to supporting the revitalization of the Western New York and upstate economy. Yahoo!’s choice of New York over other states could be the catalyst that sparks an economic recovery for the region.”
