Governor George E. Pataki has announced that HSBC, one of the largest banking and financial services organizations in the world, plans to invest $166 million to expand its North American Data Center operations in Western New York, providing a tremendous boost to the regional economy. The project, which includes a total company investment of $1.77 billion over the next 15 years, will create 78 new jobs, and provide for a retention of another 1,500 jobs in Western New York beyond HSBC's current job retention commitments. This major investment by HSBC, and the commitment to Buffalo Niagara it demonstrates, is proof positive that the availability of low cost hydropower can and should be a major benefit to doing business in Buffalo Niagara, said Andrew J. Rudnick, president & CEO of the Buffalo Niagara Partnership. "Companies have a choice to make about where to locate, expand or move, and in this case, 11MW of Expansion Power will yield $1.77 billion in private sector investment in our community. That investment is directly tied to the retention of local jobs, and the creation of new ones.
HSBC's $1.77 billion investment includes:
$96 million for the 275,000 square foot building in Niagara County and the 25,000 square foot expansion of an existing Data Center in the Town of Amherst;
$70 million in IT infrastructure to begin operations at their two data centers;
and $105 million annually in IT infrastructure annually over the next 15 years.
These investments will allow HSBC to maintain and enhance their data operations for processing all bank transactions in the US and Canada. HSBC also committed to retaining 1,500 employees in Western New York through 2020 beyond their current commitment. In 2001, HSBC committed to maintaining its workforce at 4,000 corporate positions through 2015.
HSBC currently has 5,800 employees in Western New York, 7,800 in Upstate New York and over 15,000 employees statewide including corporate and branch employees.
In consideration of its commitment to New York State, HSBC is eligible to apply to Empire State Development for a Capital Grant of up to $800,000 to be used towards construction, renovation, IT expenditures and machinery & equipment required for this project. Additionally, the company is eligible for local tax incentives, plus energy benefits including a NYPA allocation of 11MW.
The Power Authority trustees have allocated the electrical capacity from the Niagara Power Project as part of the financial incentives package spearheaded by Governor Pataki for the HSBC data center plans. The power will be drawn from a block of 250MW of industrial power known as Expansion Power, one of two large blocks of low-cost Niagara hydropower reserved for Western New York businesses and industries. Together, they're directly linked to about 43,500 jobs in the region.