Posted By Rich Miller On September 25, 2008 @ 11:49 am In Yahoo | 4 Comments
Yahoo continues to move forward with plans for a major data center project in Nebraska, even as the company appears to be preparing for cost-cutting that could include employee layoffs. Yahoo  paid $14.8 million to purchase a warehouse and headquarters building for Tender Heart Treasures in La Vista, Nebraska, according to property records.
The property includes a 300,000 square foot existing structure on 24.3 acres of land, with approval to add a 38,000 square foot expansion. The building includes a three-story office area and a warehouse with a 35-foot ceiling. Tender Heart Treasures, which makes gifts and home decor products, will vacate the building in January when it moves to another location, according to the Omaha World-Herald .
In August Yahoo applied for tax incentives under the Nebraska Super Advantage program, which requires a minimum investment of $100 million and the creation of at least 50 high-salary jobs paying a minimum average salary of $68,700. The filing revealed that the project would be in La Vista, a fast-growing Omaha suburb whose corporate residents include HP and eBay’s Paypal unit, which employs about 2,000 workers at a call center not far from the new Yahoo site.
Omaha was recently named one of the most affordable  U.S. cities to operate a data center by The Boyd Company, with an annual operating expense of $12.9 million, less than half the cost of operating a similar facility in New York.
Yahoo has been accelerating its data center build-out in recent months, leasing data center space in Santa Clara from Digital Realty Trust (DLR) and speeding deployment of its footprint in a facility in Ashburn, Va.  operated by Dupont Fabros  (DFT).
But the company is reining in spending in other areas. Yahoo disclosed yesterday that it has hired consulting firm Bain & Co.  to help review its expenses and find ways to boost efficiency. The review is widely expected to result in employee layoffs  at Yahoo.
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URL to article: http://www.datacenterknowledge.com/archives/2008/09/25/yahoo-buys-site-for-nebraska-data-center/
URLs in this post:
 Image: http://www.datacenterknowledge.com/wp-content/uploads/2008/09/lavistasite.jpg
 Yahoo: http://www.datacenterknowledge.com/archives/category/yahoo/
 Omaha World-Herald: http://www.omaha.com/index.php?u_page=1208&u_sid=10442296
 applied for tax incentives: http://www.datacenterknowledge.com/archives/2008/08/27/yahoo-nebraska-data-center-set-for-la-vista/
 most affordable: http://www.datacenterknowledge.com/archives/2008/May/12/the_most_affordable_data_center_markets_2008.html
 data center space in Santa Clara : http://www.datacenterknowledge.com/archives/2008/May/28/yahoo_to_lease_digital_realty_data_center.html
 Digital Realty Trust : http://www.datacenterknowledge.com/archives/category/digital-realty-trust/
 Ashburn, Va.: http://www.datacenterknowledge.com/archives/2008/Jun/05/yahoo_steps_up_its_data_center_investment.html
 Dupont Fabros: http://www.datacenterknowledge.com/archives/category/dupont-fabros/
 hired consulting firm Bain & Co.: http://www.bloomberg.com/apps/news?pid=20601087&sid=agAWkr8cYOxI&refer=home
 employee layoffs: http://kara.allthingsd.com/20080924/layoff-alert-not-ifwhen/
 Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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