BlackRock recently announced the groundbreaking of its New York data center, located in Amherst. The initiative, first officially announced in July of 2014, was largely driven by the data center tax incentives being offered in the state.
The Amherst data center will cost a reported $80 million, and will include a 31,000 square-foot facility in the CrossPoint Business Park. While the area offers a number of benefits for the data center industry – including robust fiber resources, a reliable power grid and low-cost hydropower – it is the data center tax incentives that set the location apart.
BlackRock received a considerable incentive package for the New York data center project, including savings of $6.8 million in sales tax, $2.15 million in property tax and approximately $165,000 in mortgage recording taxes. At the same time, however, the company is spending a considerable sum on the Amherst facility; BlackRock spent $1.3 million for the land on which the data center will sit and will spend $16 million on non-manufacturing equipment as well as $16 million on building expenses.
"It's a very capital-intensive project and its a very energy-intensive project," noted David Mingoia, deputy director of Amherst IDA, the organization offering the tax incentives. "We've had a great deal of development … and this particular [project] is a great deal for our region."
The New York data center construction initiative is considered one of the largest to be undertaken this year.
BlackRock is considered one of the most prominent money management firms in the world, touting $4.3 trillion in managed assets through its global investment and risk management services. The company currently has 11,000 staff members, and will employ an additional 25 with its Amherst data center.
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