Data Center Locations: North America
New York State
A well educated workforce, mild climate and sophisticated telecommunications network makes New York work for data center operators according to Empire State Development’s Michael Morse and Jim Held
New York - already home to the industry’s big names
New York State is a world leader in the business and professional services industry, and in recent years an increasing number of data centers have opened in the Empire State. The state off ers a well-educated workforce, a mild climate, sophisticated telecommunications networks and low-cost and reliable power. This combination puts New York in a competitive position to support data-driven businesses throughout the world.
Already home to Yahoo!, Verizon and IBM , the state has a number of academic and research institutions that create a highly talented and skilled workforce trained
in engineering
and computer and information systems. The State University of New York (SUNY) is one of the largest public higher education systems in the world. In fact, almost 32% of adults in New York State have four or more years of college, compared to 28% for the rest of the nation. In addition, the cost of labor, particularly in Upstate New York, is notably competitive with other areas of the country.
Real estate in New York There is a large and diverse selection of design/build options and shovel-ready sites throughout New York State. A list of shovel ready sites is available through the New York State Governor’s Offi ce of Regulatory Reform and you can fi nd other real estate locations at htt p://
NewYorkState.ZoomProspector.com.
Residential real estate in New York State is highly competitive and many of the state’s regions are recognized for their aff ordable real estate values. The average price-per-square-
foot for a home in Buff alo (NY’s second largest city) is $46/SF versus $1,188/SF in New York City with commercial real estate costs largely refl ective of this same trend.
Network connectivity and power New York boasts one of the most advanced telecommunications systems worldwide, consisting of a competitive statewide network featuring millions of access lines. While the state’s overall telecommunications infrastructure continues to expand, the focus moving forward is on broadband. More than US$7bn in stimulus funding will be used to build the next generation of broadband networks for New York.
The biggest draw for data center companies, however, is the access to low-cost power. The New York Power Authority (NYPA) provides the lowest-cost renewable hydro electricity in Upstate New York. Its economical electricity is already linked to the att raction of major global companies and nearly 385,000 jobs statewide. The Power Authority also works closely with state and local entities on pairing incentives.
NYPA’s Recharge New York program provides low-cost power to businesses and not-for-profi t organizations that commit to creating and retaining jobs in New York and participants receive benefi ts either through a cash rebate from NYPA to off set their electricity costs or through a discount on electricity rates. In addition, the Power Authority sells large amounts of electricity generated at its Niagara Power Project to businesses inside Western New York.
This low-cost hydropower and resulting energy effi ciency, as well as the region’s cooler climate and prevailing winds, keeps server buildings cool. This is what att racted Yahoo! to open its new environmentally friendly data center in Lockport in Western New York. The Lockport facility’s Power Usage Eff ectiveness (PUE) rating is nearly half that of the industry average. It uses about 40% less energy and at least 95% less water than its competitors. The project was granted 15MW of low-cost power by NYPA and Lockport is off ering a payment in lieu of taxes incentive that will include a 20-year tax break. The deal will also include a sales tax exemption on all equipment purchases, an incentive which has been adopted by a number of states hoping to lure data centers.
Funding disbursed through the state’s Industrial and Process Effi ciency Program will also support energy studies and capital improvements to increase energy effi ciency and productivity and reduce waste, as seen at Syracuse University’s Green Data Center. Launched in conjunction with New York State and IBM, the Green Data Center is one of the world’s greenest computer centers in operation today.
In addition to its energy credits and incentives, New York State off ers business assistance in the form of grants, tax incentives, loans and technical assistance. The Excelsior Jobs Program provides tax credits for job creation and investment in targeted industries such as high-tech, clean technology, green technology, fi nancial services and manufacturing. Other incentives include the Empire State Economic Development Fund, the Linked Deposit Program, the Upstate Regional Blueprint Fund and the Downstate Revitalization Fund, among others.
A complete list of incentives to assist businesses expanding or choosing to locate in New York State can be found at New York First (
www.NYFirst.ny.gov). This contains the full scope of economic development programs available in New York State listed by type of assistance, size of business, MWBE status, industry, administering agency and more.
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