State ready to welcome Yahoo! to WNY

Gov. David Paterson announced Tuesday that the New York Power Authority has approved a proposal designed to develop a regional data center operated by Yahoo! Inc. in Western New York.

State officials said if the proposal is accepted by the company, Yahoo! would invest at least $150 million for the construction of a new East Coast Regional Datacenter and create 125 new high-tech jobs in Western New York.

The project was initially discussed a few weeks ago by U.S. Sen. Charles Schumer who said the company was considering a site, still to be determined, in Western New York for such a facility.

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According to the governor's office, Yahoo!???s new facility is expected to be located in either Niagara or Genesee counties. The company has indicated the average wage and benefits of the new data center jobs will be approximately $65,000.

The development revealed by Paterson followed a power authority vote to grant California-based Yahoo! an allocation of 10 megawatts of low-cost hydropower from the Niagara Power Project for the first phase of construction, which could potentially begin in the fall of 2009 and be operational in January 2011.

A second phase of the project, expected for the spring of 2012, would include potentially tens of millions of dollars in additional investments by Yahoo! for Western New York. In return, Yahoo! would receive an additional five megawatts of NYPA hydropower.

Yahoo! issued the following statement in regard to the announcement: ???We are continuously evaluating new ways to best support our business needs and we are in a dialogue with various state officials about our potential options. New York State officials and the Governor???s office have been very supportive in helping us evaluate our options in New York State, and we???re pleased to learn of the New York Power Authority???s vote, but we do not disclose information related to ongoing discussions.???