Yahoo! opens data center, completes phase 1 of investment in west New York

Yahoo! finished the first phase of its investment in Western New York with the opening of a new $150 million data center in the Lockport, NY yesterday. The data center will host consumer services, advertisements and content found on Yahoo!. Construction of the facility began in May 2009 and wrapped up this month.

The company says that it chose Lockport, because the cooler climate year-round will lead to lower energy costs and ultimately a greener facility. The Lockport facility is the first green data center for Yahoo! and utilizes their own green standards – Yahoo! Computing Coop (YCC). These standards received federal funding and recognition from the US Department of Energy. The company claims that the data center will use 40% less energy than other similar facilities.

Beyond a cooler climate, New York also offered several incentives to Yahoo! including fifteen megawatts (MW) of low-cost hydropower from the New York Power Authority (NYPA) for Phase I. The Town of Lockport Industrial Development Agency also put together a package of local incentives for the company, including a payment in lieu of taxes agreement (PILOT). The state hopes to bring other technology and data companies to the area and foster a technology based economy there.

“Having an international company of Yahoo!’s caliber establish a presence in Lockport opens the door to enormous possibility in locating other high-tech companies to Western New York. I am excited to see that Yahoo! is well underway with their investment in New York State and look forward to seeing the many opportunities this will bring to Niagara County and the broader Western New York community,” Governor Paterson said.

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