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ECONorthwest Economic Impact Prineville’s data center

ECONOMIC DEVELOPMENT FOR CENTRAL OREGON. ECONorthwest Economic Impact Prineville’s data center. FACEBOOK: ECONOMIC IMPACT FACTS. Report prepared by ECONorthwest 30-year-old Company Economic development, land-use, natural resources, business, finance Measure economic and fiscal impacts.

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ECONorthwest Economic Impact Prineville’s data center

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  1. ECONOMIC DEVELOPMENT FOR CENTRAL OREGON ECONorthwest Economic ImpactPrineville’s data center

  2. FACEBOOK: ECONOMIC IMPACT FACTS • Report prepared by ECONorthwest • 30-year-old Company • Economic development, land-use, natural resources, business, finance • Measure economic and fiscal impacts

  3. FACEBOOK: ECONOMIC IMPACT FACTS • Overall Impacts in Oregon • $210.4 million total capital costs • $142.7 million economic activity • $9.2 million personal income • 1,081 jobs

  4. FACEBOOK: ECONOMIC IMPACT FACTS • Expenditure Approach • Capital, payroll, goods & services • Measured in two phases: • Capital expenditure (construction) • Operations & Maintenance (yearly activity)

  5. FACEBOOK: ECONOMIC IMPACT FACTS • Impacts by type: • Direct (payroll, output, non-labor) • Indirect (purchases of goods & services) • Induced (further consumption & investment)

  6. FACEBOOK: ECONOMIC IMPACT FACTS • Capital spending in Prineville • $15.2 million economic activity • $6.0 million personal income • 148 local jobs • $1.2 million in sales on lodging, food, retail

  7. FACEBOOK: ECONOMIC IMPACT FACTS • Operations spending in Prineville • $21.3 million in economic activity • $5.5 million personal income • 111 jobs for local workers

  8. FACEBOOK: ECONOMIC IMPACT FACTS • Operations spending in Prineville • 55 full-time jobs currently • Avg. wage = $59,400 (wages + benefits) • 35% above avg. wages across region

  9. FACEBOOK: ECONOMIC IMPACT FACTS • Operations Economic Multiplier • Output = 1.3 • Personal income = 1.7 • Jobs = 2.0 • $1 million payroll = $700,000 more income • 10 jobs created by FB = 10 jobs elsewhere

  10. FACEBOOK: ECONOMIC IMPACT FACTS • FB spending has potent economic effect • Above average wages support more consumption-related spending • Developed strong supply-chain in Oregon • Supply-chain partners support above avg. wages of ($64,200) that support additional consumption-related spending

  11. FACEBOOK: ECONOMIC IMPACT FACTS • What if facebook didn’t exist? “The economic contributions of facebook are enhanced by the nature of its operations in Oregon and the fact that almost all of the revenues used to finance its operations are from non-Oregon sources. In this regard, all of the spending by facebook and the associated economic and fiscal impacts are considered net new impacts for the state.”

  12. FACEBOOK: ECONOMIC IMPACT FACTS • What are the trade-offs? • Do data centers use too many resources? • Water, sewer, power • Is the 15-year tax incentive worth it?

  13. FACEBOOK: ECONOMIC IMPACT FACTS • Facebook water usage • What’s the comparison to other businesses? • Woodgrain: 172.91 gpm • Contact: 68.85 gpm • NW Laundry: 62.08 gpm • Facebook: 28.00 gpm

  14. FACEBOOK: ECONOMIC IMPACT FACTS • Long term plan for water? • Water capacity exists, but infrastructure improvements needed. Future data centers to pay for any and all upgrades • Facebook funded water study • Feasibility of utilizing city’s wastewater

  15. FACEBOOK: ECONOMIC IMPACT FACTS • Data center power usage • Varies based on size and scope • Average usage 28 MW per 330,000sf • Data centers pay 100% for power

  16. FACEBOOK: ECONOMIC IMPACT FACTS • Is there enough power capacity? • 720 MW currently in regional system • 796 MW by July 2013 • 1077 by mid 2014 • 1,477 in 4-5 years

  17. FACEBOOK: ECONOMIC IMPACT FACTS • Long-term enterprise zone tax incentive • Offers 15-year tax incentive for rural, economically distressed communities • Must create and maintain 35 jobs • Pay 150% above average wages • Minimum investment level: $8.8 million

  18. FACEBOOK: ECONOMIC IMPACT FACTS • Long-term enterprise zone tax incentive • Facebook saves about$1.5 million per year • However, community is getting: • $21.3 million in economic activity • $6.0 million in personal income • 111 jobs

  19. FACEBOOK: ECONOMIC IMPACT FACTS • Long-term enterprise zone tax incentive • Helps with job recruitment efforts • Creates competitive business climate • Approved by city/county in a public hearing

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