Facebook could have a new neighbor as Apple decides whether Prineville, Oregon, would make a suitable location for their next data center (codenamed Maverick). Apple is reportedly looking at a 160 acre plot of land in Crook County that’s a quarter mile south of Facebook’s nearby sever farm. Apple’s option to buy the land will expire at the end of the month, so a decision has to be made soon.
Sources with inside knowledge of Apple’s plans have told The Oregonian that Apple might be looking to take advantage of Oregon’s low power cost and property tax exemptions. Server farms are popular in Oregon, where rural “enterprise zones” free companies from paying property taxes on computer equipment, and the mild climate helps offset energy costs.
There are a couple of snags hanging up the decision. One revolves around a tax on intangibles, which take the value of a company’s brand into consideration. Intangible fees can undercut the tax exemptions that companies like Apple, Facebook, and Google are granted.
On the topic of energy, Apple’s plans aren’t finalized as they await word on whether Prineville can provide enough electricity for their Data Center. Apple will have to wait behind other local companies as transmission capacity is increased via the Bonneville Power Administration. Rackspace has already opted to build their new server farm elsewhere (Morrow County). However, the region’s transmission capacity is looking to be expanded a year ahead of schedule thanks to state delegation, and it’s possible Apple might have an open door thanks to recent developments.
To serve Facebook and other data centers in Crook County, the BPA says that it must upgrade the nearby Ponderosa Substation, add transmission lines and eventually add another substation. The full build-out would take two or three years and cost around $26.5 million.
Apple’s next data center will continue bolster their online offerings such as iCloud, which will require 31-Megawatts of power to operate. Currently, electrical transmission in Prineville is maxed out.
Data centers also generate franchise fees for local governments with their high electricity use, and Apple would bring its Prineville property onto local tax rolls by acquiring it from the county.
Apple’s data center will bolster their online offerings such as iCloud, mirroring the data center that was constructed in Maiden, North Carolina. The Maiden data center came under scrutiny as it was questioned whether the tax exemptions granted to Apple was worth the number of jobs (only 50) it brought to the region. While the data center won’t solve Crook County’s record 15.8 percent unemployment rate, the data center would provide a short term stimulus as construction of the facility (and expansion of other facilities like Facebook’s) takes place.
[The Oregonian via Macgasm]
