Niagara County Says Yahoo!

Thursday, 08 July 2010 16:56

Written by Rakesh Dogra

Yahoo Inc. has finished constructing the first phase of its data center and has begun work on the second phase at a 30-acre site in Niagara County. Niagara County is in the northwest corner of New York State, and it is bordered on three sides by the waters of Lake Ontario, Niagara River, and Tonawanda Creek. According to David Dibble, Yahoo executive, the site features a “brand new design and engineering approach focused on energy efficiency.”

The Town of Lockport has been witnessing the construction of the $150 million data center since June 2009.

Yahoo chose Niagara County because of the availability of water, sterling collaborative efforts between county and town officials, and concessions granted by New York Power Authority (NYPA), along with low-cost hydropower. NYPA has guaranteed a total of 15 megawatts of hydropower, which will save Yahoo around $100 million over the next 15 years. NYPA runs the hydropower in western New York, with the mighty Niagara Falls as its main generating facility.

The town Industrial Development Agency has also granted a 20 year payment-in-lieu-of-taxes (PILOT) agreement. This agreement excuses Yahoo from paying all county and school property taxes for 10 years and also eliminates the sales tax on all equipment purchases. The agreement phases in taxation in 20% increments of assessed value every two years after that.

One of the main reasons for locating in Niagara County is the region’s clean, green power and abundant water to cool the facility. As Congressman Brian Higgins stated, “Western New York’s access to hydropower makes this development possible, and the region’s future hinges on our ability to see much greater benefits from this unique resource.”

For the county, this investment has many benefits, like the creation of 75 high-tech jobs. The county now plays host to Yahoo’s East Coast Regional Data Center, the world’s largest global online network of integrated services. Yahoo is also giving back to the community by getting its corporate employees to do some yard work for a local organization in Niagara County. Yahoo also donated stone fill to Lytle Park’s parking lot.

The pride that the county has taken in attracting this project, and their support for the same, has netted them an appreciation letter from Yahoo. As Marc R. Smith, town supervisor, stated, “The letter commends the local companies and unions involved in the project for their hard work and appreciates the speed and quality of work.” The company wants to keep everyone on for the second phase as well.

As New York Governor David Patterson stated, “Yahoo’s decision to locate a data center in Niagara County solidifies New York’s position as a leader in the New Economy.”

Structure Tone is the company overseeing the project for Yahoo. The company is a full-service contractor and has been operating in the market for almost four decades.

Earlier this year, three diesel generators were placed at the site to serve as back up. Each of these generators, which were supplied by Cummins Northeast, has a whopping two megawatt capacity. As service manager Jeff LaMartina stated, “The generators are only backups in case electric power from the regular utility grid goes out. Two of the generators will be assigned to each of the three 33,000-square-foot pods that will be filled with computer hardware, and a smaller 750 kilowatt generator will be assigned to the administrative building.” Interestingly, the fuel tanks for the generator are “ballistics rated,” meaning they are bullet-proof!

The first phase of the data center involved construction of the 35,000-square-foot administrative office area along with three 30,000-square-foot wings. Phase two will see the addition of two more wings or pods and should be functional by September of this year.

Yahoo spokesperson Yasemin Krause said that the administration building will be functional in July, and the second quarter of the year should see the start of the hiring process, beginning with a site manager.

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