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Yahoo Northeast Regional Datacenter

Buffalo Niagara Enterprise

In the fall of 2008, internet giant Yahoo! began investigating sites for new Northeast regional datacenter. Yahoo!”s internal site selection team was charged with identifying a site to meet a lengthy list of stringent criteria. Given the extremely high level of capital investment associated with such a large datacenter, strong emphasis was placed on finding the ”ideal” site.

Project Need(s)
Given the hundreds of criteria necessary, identifying viable sites was a challenge. In addition, Yahoo!”s executive staff put their site selection team on a strict timeframe therefore all issues involving utilities, permitting, incentives, and public relations need to be addressed very quickly.

Project Solution
Buffalo Niagara Enterprise (BNE) conducted an in depth regional site search, identifying seven potential sites. Once Yahoo! identified their primary site, BNE led the coordination effort between Empire State Development Corporation, New York Power Authority, New York State Electric & Gas, the Lockport Industrial Development Agency, the Town of Lockport, and a range of private professional service providers. Ultimately, it took the state’s decision to provide low-cost hydropower, significant tax breaks, ability to begin construction immediately, and the region’s cool temperatures to seal the deal. Yahoo! found Buffalo Niagara’s temperature to be a cost savings because the facility would use a “free cooling” concept- they will – use the cooler ambient air outside to cool down their servers. ’s windows can be opened during the winter to cool the datacenter servers.
The project was successful due to a concerted and team-oriented approach throughout the process. Yahoo! selected a 30-acre shovel ready site in the Lockport Industrial Park where they will build their datacenter, investing $300 million and creating 125 new jobs. From their first visit to the region in late March, the project was won in a mere three-month period.