LEDC talks Verizon mega data center

The Laramie Economic Development Corporation (LEDC) released on Tuesday the latest information on Verizon Inc.’s proposed mega data center north of the city.

LEDC President and CEO Gaye Stockman spoke about the mega data center during the Laramie Kiwanis Club’s noon business meeting at The Altitude Chophouse and Brewery.

“We’re pretty excited about the fact that this could happen in Laramie,” she said.

Verizon has acquired a two-year option to buy on 160 acres of land north off 30th Street for the proposed mega data center.

Verizon is interested in the property because of its location near a railroad, interstate highway, airport and a more than adequate power supply, Stockman said.

Verizon is also interested in Laramie because of its cool temperatures.

“They wanted a location that there was fewer days above 85 degrees,” Stockman said. “They perceive that they don’t have to buy a whole bunch of … air-conditioning systems to keep their computers cool.”

Stockman said Verizon has met with the LEDC about security and with the city and county about fire and police services.

Verizon also wanted information about the local workforce, which Stockman said is highly educated and would find qualified jobs in the mega data center.

“Fifty-two percent of our workforce in Laramie … has a bachelor’s degree or higher,” she said. “That’s significant. We have a lot of underemployed people in our community.”

Stockman said she hopes Verizon will make its decision in March, after the Wyoming Legislature has voted on House Bill 117, which would exempt data processing centers from sales and use taxes on computer software, specialized heating and air-conditioning equipment and power supplies when their total cost exceeds $2 million in a calendar year.

HB 117 passed the House on a 52-6 vote on Monday and is on its way to the Senate Revenue Committee.

In the meantime, Laramie is competing against Cheyenne, Fort Collins, Colo., and Boise, Idaho, for the mega data center.

However, Stockman noted that Laramie is the only community in which Verizon has purchased an option to buy property.

“They bought an option on property in our community which, to me, is significant,” she said. “That makes a big, big difference.”

Unlike a data center that just computes information, a mega data center offers services, Stockman said.

“A mega data center employs people to do software and to do work for businesses and communities,” she said.

“They are not manufacturing anything but are providing services.”

Mega data centers typically consist of several buildings located on 500,000-700,000 square feet, which dwarfs the National Center for Atmospheric Research (NCAR) supercomputer in Cheyenne, Stockman said.

“If you put that into comparison with the NCAR project … this is five times the size,” she said.

The proposed mega data center’s impact on Laramie would be enormous, Stockman said.

The Wyoming Business Council (WBC) estimates Verizon’s proposed mega data center would be a multi-billion dollar facility that would create 500 jobs during construction and 150-200 executive jobs during operation.

The mega data center would have a payroll of $94 million to $500 million over a five-10 year period and jobs with an average annual wage of $75,000-85,000.

“That’s a huge economic impact for Wyoming, much less Laramie,” Stockman said.

The WBC also estimates the mega data center would purchase and pay sales tax on 75 megawatts of electricity over an eight-year period, which is equal to what the city uses, Stockman said.

Furthermore, the WBC estimates an 83 percent return on investment.

For example, a $13.75 million investment from state and local governments would result in $160 million in tax benefits within 10 years.

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