BlackRock Inc. announced in early January that the construction of its new New York data center is about to start.
The building of the facility, one of the largest development projects in the area, will cost approximately $80 million. The New York data center will be built in the CrossPoint Business Park in Getzville, a hamlet within the city of Amherst, which is northeast of Buffalo. The site will offer almost 31,000 square feet of available space and will create jobs for an estimated 25 people by 2018.
BlackRock received a financial package from the Amherst Industrial Development Agency that included a variety of data center tax incentives. The company took advantage of a variety of financial benefits, including property, sales and mortgage recording tax breaks and a payment-in-lieu-of-taxes agreement for 10 years. In total, the package will save the company more than $9 million.
Amherst IDA deputy director David Mingoia said the agreement with BlackRock is one of the largest deals the agency has done in terms of costs.
"It's a very capital-intensive project and it's a very energy-intensive project," said Mingoia. "We've had a great deal of development … and this particular one is a great deal for our region."
BlackRock's decision to build in Amherst highlights the increased popularity of Western New York for data center service providers and operators. The area's low operating costs, abundant inexpensive power and telecommunications capabilities, naturally cooler climate and available workforce are a major draw for operators looking for a place to build a new facility. A number of major companies have chosen to create Western New York data centers, including Yahoo, Verizon and HSBC.
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