Tax break for Bloomberg's data center project approved

Russo and Sentinel to build and own facility as joint venture

23 May 2013 by Yevgeniy Sverdlik - DatacenterDynamics

Tax break for Bloomberg's data center project approved
Construction site of Bloomberg's future data center in Orangetown, New York

Officials in Orangetown, New York, have approved a tax-break package for construction of a massive data center in town that will be occupied by the media and market-data giant Bloomberg.

 

In a second joint venture between the two data center builders, Russo Development and Sentinel Data Centers will build the 130,000 sq ft data center. Bloomberg will lease the facility from the joint venture, the developers said.

 

News that Orangetown was on the short list for Bloomberg's next data center location came out last week. This Thursday, Russo and Sentinel released a joint public statement saying New York mayor Michael Bloomberg's company was approved for a tax abatement and had signed the lease on the property.

 

For Orangetown (about 30 miles north of New York City), like for many other small towns around the US, a large data center project is a way to boost local economy through job creation and new tax revenue. Tax breaks and expedited planning-approval process are common tools municipalities and states use to lure such massive builds.

 

Andy Stewart, a town supervisor, said he was pleased with the development. “Bloomberg's decision to locate here shows that Orangetown is back on track and able to work effectively with investors to meet our community's needs for appropriate commercial development, jobs and a solid tax base,” he said.

 

The data center will be housed in a one-story facility and provide more than 7MW of critical power. The developers plan to bring it online in the middle of 2014.

 

Earlier reports indicated that Bloomberg was expecting to spend about US$710m on the project over the next 15 years.

 

The company's data center strategy consists of a mixture of owned and leased facilities, Vipul Nagrath, its CIO, told DatacenterDynamics FOCUS in a 2012 interview.

 

Russo has owned the Orangetown property since 2009. Its first joint venture with Sentinel was construction of a data center in Somerset, New Jersey.

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