Low-cost hydropower from NYPA to power new Yahoo data center

New York Governor David A. Paterson announced that Yahoo Inc., the world’s largest global online network of integrated internet services, has completed the first phase of a multi-phased investment project in Western New York. Low-cost hydropower was among the incentives offered to Yahoo.

The company finished construction and opened a new $150 million data center facility, creating 125 jobs. The data center will host consumer services, advertisements and content found on Yahoo.

Phase I, which was just completed, focused on the construction of four buildings, including an administrative building and three data wings where the company’s servers are stored. Construction for this phase began in May 2009.

In order to locate operations in Lockport, Yahoo received various incentives, including 15 MW of low-cost hydropower from the New York Power Authority for Phase I. The company also secured a “Green IT” U.S. Department of Energy grant for leadership in energy efficient design. Finally, the Town of Lockport Industrial Development Agency put together a package of local incentives for the company, including a payment in lieu of taxes agreement (PILOT).

New York Power Authority President and CEO Richard M. Kessel said: “Yahoo’s presence in Western New York underscores the region’s ability to attract a world leader in high technology using its best resource – low-cost hydropower. Under Governor Paterson’s leadership, we have aggressively pursued economic development opportunities that have resulted in multi-million dollar private investments and job creation and have spurred momentum to attract other new economy companies to the region and state.”

In other news, the New York Power Authority recently marked the completion of a nearly four-year overhaul of its Blenheim-Gilboa pumped-storage hydro project in New York. NYPA’s Life Extension and Modernization (LEM) effort will improve the reliability of critical electricity infrastructure and increase the NYPA’s ability to help meet the long-term energy needs of the state, the NYPA reported.

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