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Microsoft opens window in Cheyenne [Wyoming Tribune-Eagle, Cheyenne]
[April 10, 2012]

Microsoft opens window in Cheyenne [Wyoming Tribune-Eagle, Cheyenne]


(Wyoming Tribune-Eagle (Cheyenne, WY) Via Acquire Media NewsEdge) April 10--CHEYENNE -- Microsoft will build a $112 million data center in Laramie County that is expected to bring up to 40 new jobs and provide the state with millions in tax revenue.



Gov. Matt Mead announced Monday that the Redmond, Wash.-based software, video game and smartphone giant accepted a state incentive package worth up to $10.75 million to build the data center here.

The project is expected to create 17 high-paying jobs when the first phase is completed next spring. It could eventually employ 40 people.


Officials said the direct and supporting jobs, such as from the construction work, could create an economic impact of more than $140 million for the state. Mead added that the state projects it will receive $25 million in tax revenues from the project during the next 10 years.

Mead said the announcement is also a key step toward diversifying the state's economy to make Wyoming less dependent on the volatile energy industry.

"This is not about just us trying to find another industry," he said. "But it is about finding an industry that is a natural fit for Wyoming.

"We have a workforce we can develop, we have low-cost electricity, and we have a favorable tax structure." The data center will allow Microsoft to expand its "cloud" computing services in Wyoming and the rest of the region. Cloud computing allows users to store digital information on the Internet instead of it physically being stored on their computer or another electronic device.

Randy Bruns, CEO of Cheyenne LEADS, the economic development arm of Cheyenne and Laramie County, said construction on the first phase likely will begin by early summer.

"(Microsoft) is on a very aggressive schedule, and frankly that is one of the reasons they continued to talk to us and zeroed all the way in on Cheyenne," Bruns said. "We have a site that is essentially shovel-ready, and all the zoning and subdivision (planning) is already done." The project is expected to be built in the North Range Business Park west of Cheyenne. State officials could not confirm the planned location because of an agreement with Microsoft, but Bruns hinted at the site by saying it will built on LEADS-owned land west of the city.

Laramie County beat several other communities that were competing for the project.

Bob Jensen, CEO of the Wyoming Business Council, said Evanston, Rawlins and Laramie were among the in-state cities that Microsoft considered. He said at least one other state in the Rocky Mountain region also is believed to have been a candidate.

Officials said without the state incentives, Wyoming would not have been in the running.

The publicly funded state incentive package includes: n $5 million from the Governor's Data Center Recruitment Grant program n $5 million from the state's Business Ready Community Managed Data Center Cost Reduction Program n Up to $750,000 in workforce training funds Bruns said the money is conditional on Microsoft fulfilling much of its promises. For example, he said local residents need to be hired for the workforce training funds to be used.

In addition, Microsoft would not eligible for the Governor's Data Center Recruitment Grant if construction does not begin within three years.

"The state does a very good job of looking after these resources and making sure they are only spent once the company has met their commitments," Bruns said.

Bruns added that Microsoft told the state it would hire locally when possible. But Bruns said companies also tend to bring in at least some "key" outside resources for projects such as this.

According to a Wyoming Business Council report, Microsoft will invest $78 million on new construction for the first phase of the project.

This is expected to create 17 new jobs with a median wage of $39.32 per hour. That is more than double Laramie County's median wage of $15.58 per hour.

Officials did not give a timetable for the second phase, which could bring the job total to 40.

The Microsoft data center will join other high-tech projects in the area that include the National Center for Atmospheric Research-Wyoming Supercomputing Center and two other smaller data centers.

Jensen said the prestige of Microsoft's name could give the state momentum for recruiting even more of these types of firms.

"This is a milestone for us in our statewide quest to try and increase digital industry throughout the state," he said. "But we are not done, and there are many more steps to take." ___ (c)2012 Wyoming Tribune-Eagle (Cheyenne, Wyo.) Visit Wyoming Tribune-Eagle (Cheyenne, Wyo.) at www.wyomingnews.com Distributed by MCT Information Services

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