The second time proved to be the charm for Utah in recruiting a Facebook data center.
Squabbles about the pros and cons of having a data center in West Jordan prompted the company in 2016 to put the 510,000-square-foot facility instead in Los Lunas, New Mexico. Last week, however, Facebook and various government officials announced that Eagle Mountain will be the home of a 970,000-square-foot data center that is expected to be operational in 2020.
The $750 million project will be on 490 acres at the Sweetwater Industrial Park. The company also will spend $100 million on infrastructure to serve the data center, including building a 1,000-megawatt electrical substation. The data center is expected to have 30-50 employees, with the potential for more contract workers.
Founded in 2004 and based in Menlo Park, California, Facebook has more than 25,000 employees and more than 2.2 billion monthly active users.
“We selected this location for a number of reasons: by having good access to renewable energy; a strong talent pool; and, very importantly, a great set of community partners,” Rachel Peterson, Facebook’s vice president of data center strategy, said at a news conference announcing the project.
“This is going to make a very big, positive impact on our community. This will be a great, great addition,” said Eagle Mountain Mayor Tom Westmoreland. “We have a rare opportunity here to plan a city of the future nearly from the ground up, so we’re very particular about those whom we partner with, that they fit our long-range plan, that they believe in our vision, and I strongly believe that we have found the right partner to help fulfill that vision.”
Westmoreland said the employee count at the data center will be a good fit for Eagle Mountain, which has seen its population grow from 250 at its incorporation in 1996 to over 32,000 in 2017.
Gov. Gary Herbert said the project will boost Utah’s economy, provide employment opportunities for its “rising generation,” and boost the Silicon Slopes brand.
“I think not only is it going to have some immediate impact with jobs immediately being created in construction and also those who will work for Facebook, but this can also bring other opportunities here to Eagle Mountain, to this area,” he said. “And speaking as the governor of the state of Utah, it’s good to see some things happening that are not just on the I-15 corridor.”
Peterson said a recent study indicated that for every $1 million in operating expenses at a Facebook data center, 13 jobs are supported across the local economy. For every $1 million in capital spending, 14 jobs are supported. She predicted the project will feature hundreds of construction jobs.
“The scope of this project is certain to gain the attention of other companies looking for a future here in the state of Utah,” said U.S. Rep Mia Love, R-Utah.
Utah Attorney General Sean Reyes congratulated several people and urged Facebook officials at the news conference to relay a message to company CEO Mark Zuckerberg. “Take back to Mark congratulations to Facebook because you made the right decision this time,” Reyes said.
Economic development officials had been using the codename Project Steeplechase to describe the Facebook project. Two years ago, the failed West Jordan proposal was codenamed Project Discus.
Facebook will receive no incentives through the Governor’s Office of Economic Development (GOED). However, the Governor’s Office of Energy Development said it will provide a High Cost Infrastructure Tax Credit (HCITC). Such tax credits are designed to support investments in qualifying cost-intensive infrastructure projects. According to the office’s website, the tax credits can be used to expand or create new industrial, mining, manufacturing or agricultural activity; are composed of at least 10 percent (or $10 million) of infrastructure costs; and generate new state revenues that are directly attributable to new infrastructure investment.
Facebook has said the new data center will use 100 percent renewable energy through use of Rocky Mountain Power ’s available renewable energy tariffs. Facebook will purchase its own water rights and construct the required water infrastructure. The company said the facility will be “incredibly water-efficient and will reuse water multiple times.”
“This project will contribute in meaningful ways in elevating Utah’s economy while helping Utah’s air quality,” Love said.
The project is expected to provide a huge boost to the area through property tax revenues. The site currently produces $50 a year for the Alpine School District — an amount expected to jump to $500,000, according to Herbert. Property tax revenues for all taxing entities — the city, Utah County, Alpine School District, Central Utah Water Conservancy District and Unified Fire Service Area — is expected to reach $850,000, up from the current $66.
“A deal like bringing in Facebook requires dozens of entities and thousands of hours of work, much of which was undertaken by Eagle Mountain, Utah County and state officials,” Theresa Foxley, president and CEO of the Economic Development Corporation of Utah, said in a prepared statement. “The potential for financial return and infrastructure development is self-evident for this project, and really sets the city, county and state up for future success.”