It’s Official: Yahoo Announces $170 Million Expansion in NY

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Yahoo will invest $170 million to expand its data center campus in Lockport, N.Y., pictured above. (Photo: Yahoo)

Yahoo will invest $170 million in an expansion of its data center campus in Lockport, New York, the company confirmed today. The expansion will include more of the company’s distinctive Yahoo Computing Coops, plus a new 24-hour customer care call center, which together will result in 115 new jobs.

The New York Power Authority (NYPA) will provide a 7.2 megawatt allocation of hydropower for a 150,000 square foot expansion of Yahoo’s existing data center. That’s in addition to the 16 megawatts of hydropower  the data center currently receives.

“We are thrilled to expand our team and our facilities in Lockport,” said Richard Kropfl, vice president of Data Center Operations at Yahoo. “Western New York has been a wonderful home for us, with an incredibly talented community, clean energy from hydropower and temperate weather that enables our energy efficient free cooling design for data centers. We greatly appreciate the support that we’ve received from Governor Cuomo and New York State and local authorities as we have expanded our footprint in Lockport.”

“Yahoo’s decision to expand their operations in Lockport is a testament to the progress New York is making in attracting private investment and spurring job growth,” said New York Gov. Andrew Cuomo. “With strong assets like world-class universities and colleges, low-cost hydropower, and a dedicated workforce, Western New York is well-equipped to meet the needs of the high-tech industry. Today’s groundbreaking will bring more than 100 jobs to the community, and I congratulate Yahoo on this milestone.”

Lockport is home to 275,000 square feet of Yahoo data center space, which is part of the company’s global initiative to make its data center footprint more efficient and sustainable. The first site features many innovative features and refinements, and is famously known for adopting principles of chicken coops.

In April, Yahoo landed a 20-year package of property tax and sales tax breaks, approved by the Town of Lockport Industrial Development Agency Board of Directors. The tax breaks are expected to save Yahoo more than $30 million. The tax break package includes a 20-year sales tax abatement for building materials and equipment, as well as 100 percent abatement of property tax for 10 years. The property tax exemption would then be reduced by 20 percent every two years for the next eight.

As part of its expansion, Yahoo will contribute $500,000 per year to the Community Foundation for Greater Buffalo, a not-for-profit organization that administers charitable funds for the benefit of Western New York. The funding will be used to advance specific priority economic development strategies identified by the Western New York Regional Economic Development Council.

“The Lockport Industrial Development Agency [IDA] worked closely with NYPA and Empire State Development to make sure we were coordinated in maximizing benefits to the community from Yahoo’s expansion plans,” said David R. Kinyon, executive director, Lockport IDA and Lockport Economic Development director. 

About the Author

Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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