About two months after Colorado Springs, Colorado, officials approved a US$6m incentive package for Wal-Mart’s then unofficial plan to build a data center in the city, the US retail behemoth has officially confirmed that it will forge ahead with the project.

The company will build a 210,000-sq-ft data center within the city’s Interquest development area, according to a Colorado Connection report. Construction crews are set to break ground at the site in late October, and the company expects to complete the build in 2012.

Wal-Mart’s CIO and executive VP Rollin Ford said the Colorado Springs community had proven to be an excellent partner.

"The new data center will have strategic importance to our business and help us serve our customers more effectively," Ford said in a statement. "We are excited to move the project forward and continue this terrific relationship with the community."

According to previous reports, Wal-Mart expects to invest $100m into the project. The plan is to start with 163,000 sq ft, with anticipation to expand to 206,000 sq ft in five years.

The aforementioned tax-break legislation benefited another data center project in Colorado Springs. In addition to Wal-Mart’s package, city officials awarded $4.4m in incentives to Agilent, a maker of scientific instruments.

Agilent is planning a 20,000-sq-ft data center and a 35,000-sq-ft technology center in the city.

Both projects are expected to receive additional tax incentives from the State of Colorado, El Paso County and from the local school district. Officials are expecting the projects to create a $1bn economic impact in the region over the next 15 years.