WIVBTV | October 13, 2010
Provider submits plans for a $4.5bn data center build-out in New York State. Although the location is not a done deal, local news reports say it is ‘preferred’
More details have emerged on Verizon’s plan for a new data center which will potentially be located in the same New York State region as Yahoo!’s new facility that was officially launched in September.
Verizon has submitted an application with detailed plans for a $4.5bn data center site in Somerset, Buffalo News reports. The company plans to spend the money over the next 10 years if Somerset does end up being the final building site. While Verizon is currently short of having made an official decision to build there, the news service reports that city officials had been told the site in question was preferred over other location the company had been looking at.
The data center would consist of three two-story data halls, 300,000 sq ft each (including both stories). The site will also have a 20,000-sq-ft administrative building, a conference center and two electrical substations.
Bruce Biesecker, a senior strategist at Verizon, told the County Industrial Development Agency board that the company was planning to break ground in mid-November. The provider has asked the board for tax breaks on the property and for an exemption from sales tax on building materials and IT and networking equipment. Verizon expects savings of $330m just from the sales-tax exemption.
The company will use labor based locally and nearby, Biesecker said. “We'll be able to pull from the pool of resources in the Buffalo Niagara region and supplement it from Rochester if need be.”
Verizon is planning to buy the property from its current owner AES, an energy company that owns a nearby power plant. The site is currently being used as a soybean field.
According to an IDA document obtained by Buffalo News, Verizon is to spend $60m on land and utilities and $500m on the building. Equipment will cost $640m for Phase 1 (2011-2013), $800m for Phase 2 (2015) and $2bn for Phase 3 (2016-2021). The company plans to spend $500m on equipment maintenance and miscellaneous costs.