May 11, 2009

ALBANY — The state is trying to sell Internet giant Yahoo on establishing a data center in a Western New York, officials said Friday.

The Sunnyvale, Calif., company six weeks ago reached out to the Paterson administration to see about locating a data center — which houses computer systems and other equipment — somewhere in the state.

A state official, speaking on condition of anonymity, said Friday that Gov. David A. Paterson directed the New York Power Authority to work with Yahoo on possible state assistance involving low-cost power to lure them to the Buffalo area. A plan could go before the Power Authority board as soon as next week.

Officials said the center would not result in a large number of jobs, and a source could not put a precise number on the center’s work force. But the official said the symbolism of luring a giant like Yahoo to the region could help with other economic development efforts aimed at high-tech companies.

It’s a big brand that we can showcase, if Yahoo goes to Western New York, that sends a message that New York is open for business, that New York wants to generate jobs for the future and we want to attract cutting edge companies,” the official said.

Yahoo has been expanding its number of data centers, which use large amounts of energy, around the country and globe. It recently announced plans for a $100 million, 150,000-square-foot data center with 50 jobs in Nebraska.