NY State Shelves $100 Million Data Center

The state of New York has spent nearly five years debating where to build a $100 million data center that would allow it consolidate workloads from older sites into a modern facility.This week the project was scrapped entirely.

The state of New York has spent nearly five years debating where to build a $100 million data center that would allow it consolidate workloads from older sites into a modern facility. The project has been stalled several times as legislators have lobbied for the data center - a plum economic development - to be located in their districts.

The debate is now over. The project has been scrapped, with new Gov. Andrew Cuomo redirecting the $100 million to regional economic development councils that can benefit multiple sites throughout the state, the Albany Business Review reports. The state "decided that it was too costly and that it wasn’t the right time," said Morris Peters, a spokesman for the Division of the Budget.

What does this decision mean for the state's IT infrastructure? If there was a genuine need for a new facility back in 2006, when this process started, one can only imagine that the needs are more pressing today.

Will other data center projects to support state-level IT services suffer the same fate? With a growing number of U.S. states seeking to cut spending to close budget gaps, it's a difficult time to gain approval for expensive data center consolidations. New York may not be the only state to decide to address these opportunities by saying "too costly and not the right time."

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