9 Lives Digital Group (9LDG) has acquired a former Globe Metallurgy property for an AI data center development in Niagara Falls, New York State.
The property has been unoccupied for several years, and 9LDG plans to transform it into an AI data center, logistics, and warehousing hub.
9LDG develops high-performance computing and modular data centers at sites with excess energy resources - such as flared natural gas, or extra production from renewable power sources.
9LDG president Michael Bagley said: “We are thrilled to be moving forward with the redevelopment of this property. Establishing an AI data center in Niagara Falls is a crucial step in our mission to advance technology and bring high-quality jobs to the region. This project also aligns perfectly with Gov. Kathy Hochul's exciting AI initiative, further positioning New York as a leader in technology.”
The purchase of the property has been two years in the making, with the vacant site spanning 22 acres at 3807 Highland Avenue. The Globe Metallurgical plant, which operated as a silicon metal manufacturing facility, closed in 2018.
The sale closed on July 16, with a transfer tax of $12,000 making the approximate sale price around $3 million. It was previously purchased by developer Jerome P. Williams in 2021 for $1.5m.
"This is a comeback story for me, and part of a comeback story for Niagara Falls," Bagley told The Buffalo News, referencing his two-year prison sentence for money laundering.
After his sentence, Bagley founded a bottled water company, Jellyfish Water, based on a Gospel quote from Jesus: “Whoever drinks the water I give them will never thirst.”
The Niagara Falls property has mostly been stripped of its previous industrial structures, and construction on the data center is planned for the next 18 to 24 months, while warehouse and office space on the other side of the site will be leased out.
The location was selected by Bagley due to its availability of electricity, hydropower, and water for cooling high-density computing equipment. The site also has a 100MW substation.
The project is expected to require around $100 million in investment and will create around 500 construction jobs.
9LDG has not developed any data centers to date, with the company stating that it will be "collaborating with a data center developer to come on-site to redevelop the property.”
Bagley is one of the three business partners behind 9LDG, but Bagley declined to name the other two.
Buffalo Business First reports that Gjergj M. Hajati is also involved, citing a mortgage document that names Hajati as a management member for Highland Ave. NY 3801 LLC, the company through which 9LDG bought the property. His LinkedIn profile also describes him as the founder of 9 Lives.
Hajati served two sentences for fraud - in 2015 for a mortgage fraud scheme and in 2020 for a car dealership fraud scheme.
Niagara USA Chamber Executive Director Kory Schuler is in support of the project. Schuler said: “The transformation of this property into a center for technology is a significant development for Niagara County, and the City of Niagara Falls. It not only breathes new life into industrial land, which we have a lot of, but also highlights the growing importance of technological skill sets in our community as we strive to compete on regional, national and global levels.”
9LDG lists its address as Niagara Falls, New York 14305, United States, as well as an "international office" in Algeria.
Another large data center campus is being proposed in Niagara Falls, but the local government is hoping to use the land for a new public park development.