Saturday, November 25, 2017

Facebook to invest $1bn to triple Los Lunas data centre amid unprecedented demand

Once fully built, the eight-building campus is expected to generate its own microeconomy worth $1.88bn.

Facebook is hours away from announcing a fresh round of investment into its Los Lunas, New Mexico, data centre campus by placing $1bn extra into the construction of six new buildings.

According to the Albuquerque Journal, the announcement will be made by the social media company together with Governor Susana Martinez and other state and local dignitaries.

Governor Martinez said in a statement that the expansion by Facebook is an “encouraging momentum” for the local economy.

Martinez also pledged to continue to use “powerful tools and reforms to compete for more jobs nd investment” in to the state.

Facebook’s Los Lunas data centre, which currently has two buildings under construction, employs 650 construction workers.

The data centre has also generated more tax revenues than originally expected as reported by Koat Action News.

Whilst under construction, the campus has already generated $2.7m in gross receipts taxes for Los Lunas.

According to local authorities, 2017 so far has delivered $6.7m in gross receipts taxes, up from 2016’s $4m, leaving Facebook responsible for the $2.7m boost.

Early in January this year, a report suggested the data centre campus could create a local economy worth up to $1.88bn.

In the document, David Taussig & Associates estimated the data centre’s total economic output over ten years will be $1.88bn based on economic contributions both during the construction stage and following the opening of the hub. The figure also includes “indirect and induced” impacts.

David Taussig & Associates estimated the data centre will add $234.77m in salaries through the creation of 5,660 jobs countywide.

When fully built, the six buildings campus is expected to generate a net of $21.71m over the ten year period to the New Mexico’s general fund.

Over the same period of time, the Los Lunas county is expected to receive $28m in gross receipts tax revenues in relation to the construction project. Total gross receipts tax revenues are expected to reach $83.41m.