The $80 million data center construction project planned by asset management firm BlackRock in Amherst, New York, is scheduled to start before the end of February, Buffalo Business First reported. The project and Amherst site selection were officially announced in July.
Amherst was chosen because of various tax incentives available in the area. It will be one of the largest data center projects and private sector-driven developments the area has seen.
Tax breaks are a common way state and local governments lure data center construction projects, viewed as effective boosts to local economies.
The 31,000 square foot building will be located in CrossPoint Business Park, home to a growing cluster of financial institutions backed by good fiber and a reliable power grid. The region also features low-cost hydropower.
The incentive package saves BlackRock $6.8 million in sales tax, $2.15 million in property tax, and about $165,000 in mortgage recording taxes. BlackRock is spending close to $16 million in new-build expenses in addition to $1.3 million for the land, and over $16 million for non-manufacturing equipment.
The multinational corporation reports assets of more than $4.32 trillion through its global investment and risk management services and has more than 11,000 employees around the world.