Verizon Communications has been granted 25 megawatts of low-cost hydroelectric power for its proposed data center in Somerset, US. 

The enticement was designed to help win the US$1bn-plus project for the Buffalo Niagara region and create jobs.

But locals have not taken the news well. One correspondent to Buffalo News, which reported the story, questioned the integrity of the power authority in giving Verizon such as good deal. 

And local businesses were angered at a deal approved unanimously by the New York Power Authority board of trustees, meeting in the Power Vista at the Niagara Power Project, which approved the deal unanimously.

Four other states - Utah, Idaho, Washington and Wyoming - had bid to house Verizon's data center. Michael Huvane, the power authority's vice president for marketing, said Verizon said the project would create 145 jobs and $1.12 billion worth of investment in the local economy by the end of 2014. 

"They expect 200 jobs if they build out,"Huvane said.

Verizon previously promised $4.5 billion worth of investment in 10 years. The final decision has not yet been made and could drag on for another 60 days according to Richard M. Kessel, the New York Power Authority's CEO. 

This has led to local speculation that Verizon may be having second thoughts about its plan.

Verizon has slowed the pace of development, Huvane said, and will only build one giant data pod, instead of the original three that were proposed.