2010.08.27
Did Christiansburg’s data center go south?
Earlier this year, there was a lot of talk around Christiansburg and Montgomery County about a potential data center locating in town. No one official ever wanted to talk about it, but bits and pieces leaked out. Still, nothing new has been revealed for months.
Until today.
Microsoft announced the opening of a new data center in Mecklenburg County that sounds suspiciously like the one being talked about for Christiansburg. Government is pumping a ton of money into making it happen, just not in the NRV.
Let the excuses and finger pointing commence.
Press release about it below. I’d link to the governor’s site, but it’s still experiencing technical difficulties. Good thing Virginia expanded that IT contract with Northrop-Grumman.
Governor McDonnell Announces Microsoft to Locate Major Data Center in Mecklenburg County
Will be Largest Investment Project in History of Southern Virginia
~Company to Invest up to $499 million and Create 50 New Jobs~
Virginia Beats out North Carolina and Texas for Company’s Most Advanced Data Center
RICHMOND- Governor Bob McDonnell announced today that Microsoft Corp. will invest up to $499 million to locate their latest generation data center (Gen4) in Mecklenburg County, in what will be the largest economic investment in Southern Virginia history. Using modular technology and advanced cooling mechanics, the center will be Microsoft’s most advanced data center. The project will create 50 new jobs and Virginia successfully competed against North Carolina and Texas to secure this sought after facility.
“Microsoft is a household name and securing this global project is a significant economic win for Virginia,” said Governor McDonnell. “The company’s search process was long and competitive, and a great team of players came together to show Microsoft that Mecklenburg County was the right fit for its new version of a state-of-the-art data center. This project represents the largest investment project in the history of Southern Virginia. It will further bolster the Commonwealth’s standing as a leader in the Information Technology sector, while creating new jobs for our citizens and spurring economic development throughout the region.”
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
“We are incredibly grateful for the support and work of the Commonwealth of Virginia, the economic development team, and local officials in Mecklenburg County, and are excited to announce that we will be building our latest state-of-the-art data center near Boydton, Virginia,” said Kevin Timmons, General Manager of Microsoft Datacenter Services. “This new data center will enable the best possible delivery of services to our current and future customers. My team and I look forward to engaging in the deployment of our latest modular solution in Virginia.”
Governor McDonnell approved a $2.1 million grant from the Governor’s Opportunity Fund to assist Mecklenburg County with the project. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $4.8 million in funds. The Virginia Department of Business Assistance will provide training assistance through the Virginia Jobs Investment Program.
The Virginia Economic Development Partnership worked with Mecklenburg County and the Town of Boydton to secure the project for Virginia. The Mid-Atlantic Broadband Cooperative (MBC) provided invaluable assistance to make this project possible. MBC’s open-access fiber optic network was a key component in Microsoft’s decision to locate in Virginia, and will provide diverse fiber routes for connectivity to major carrier interconnection points in the Eastern United States. Dominion Virginia Power also was instrumental in securing this project. Access to an extremely reliable electric supply and competitively priced electricity from environmentally responsible generation sources were critical site location factors for Microsoft.
“Mecklenburg County is proud to announce the location of Microsoft in the Boydton Industrial Park,” said Glenn Barbour, Chairman, Mecklenburg County Board of Supervisors. “The selection of Mecklenburg County indicates that we are progressive and have the necessary tools available to offer in this high-tech age. We believe this selection by Microsoft will give our county the recognition it deserves in attracting future companies that deal in technology. We thank all the many partners who assisted us, especially Governor McDonnell’s office. Thanks to the Tobacco Commission, the Virginia Economic Development Partnership, the Mid-Atlantic Broadband Cooperative and Dominion Virginia Power. I would also like to thank our dedicated and hard working staff for their diligent efforts in bringing Mecklenburg County forward to the 21st century.”
“I am delighted that the County, the Tobacco Commission, and Governor McDonnell’s office worked well together for the good of the region,” said Senator Frank Ruff, a member of the Virginia Tobacco Indemnification and Community Revitalization Commission. “It is great that a company of the stature of Microsoft has seen what Mecklenburg County has to offer.”
“I am excited and thankful that Microsoft chose Mecklenburg County to locate it newest data center, resulting in new jobs and millions of dollars in investment,” said Delegate Tommy Wright, a member of the Virginia Tobacco Indemnification and Community Revitalization Commission. ”The future for economic development in Mecklenburg County and Southside Virginia is much brighter due to this successful collaborative effort.”
Delegate Terry Kilgore, Chairman of the Virginia Tobacco Indemnification and Community Revitalization Commission, also remarked, “The Tobacco Commission is excited about this investment in Southern Virginia. Microsoft’s decision to locate in Mecklenberg County is a huge investment in the area and will bring much needed economic activity and development to the region. We applaud the McDonnell Administration for their hard work in persuading Microsoft that Virginia, and more importantly Southern Virginia, really is the best place to do business.”
“We’re very proud that our advanced fiber optic network will support the high capacity, diverse routing and low latency requirements of Microsoft’s new data center at the Boydton, Virginia GigaPark,” said Tad Deriso, President & CEO of the Mid-Atlantic Broadband Cooperative. “Our GigaParks are a perfect example of how private sector companies like Microsoft can benefit from an advanced telecom infrastructure in a region with a low cost operating environment.”
“Along with serving our existing customers well, we believe it is important to help attract new businesses that bring good jobs and economic growth to Virginia,” said Dominion Virginia Power CEO Paul D. Koonce. “We are pleased to have a part in today’s good news. We see Microsoft’s decision as a vote of confidence in our commonwealth and our people.”
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At least it stayed in Virginia, that’s better than somewhere else, I suppose.
I can’t think of any reason why a forward thinking company like Microsoft would spurn the NRV.
I mean, we’re fresh off C’burg’s Town Council looking like a bunch of clowns over the handling of the Town Manager situation, seemingly not knowing what was going on and its impact on town finances.
We’re right in the middle of the County Board of Supervisors, or a certain faction of it, at least, not willing to even consider helping get the educational facilities caught up to where they need to be, after years and years of going ‘on the cheap’ to cause things to get to this point.
And in Blacksburg, it is more concerned about playing with roundabouts and eliminating traffic flows (traffic “calming” is what I believe the buzzword is), which in turn eliminates customers and causes local businesses to suffer, not to mention their fear of outdoor noises (Sonic, BHS stadium) and places where people can actually shop (Wal-Mart).
It’s hard to understand why a company built on forward thinking would not want to locate in the NRV.
Comment by Rick H. — August 27, 2010 @ 1:52 pm
@1, I wonder if the threat of a 20% higher property tax might have factored in too.
Comment by Other John — August 27, 2010 @ 2:08 pm
I am slightly surprised at the choice of Mecklenburg County, seeing as how South Hill is not exactly a high-population metropolitan area. Although, Wilson Brothers BBQ on the west side of town on 58 business is quite good, I can;t think they located there for the pulled pork.
But, it is situated right smack mid-way between Richmond and the Research Triangle in NC on I-85, so that may have a lot to do with their choice.
Comment by Other John — August 27, 2010 @ 2:11 pm
@2 Do you really think they would have paid property taxes? There would have been tax incentives galore for something like this.
Comment by C. Trejbal — August 27, 2010 @ 2:12 pm
Oops. they re-did the route numbers since I was there last, after they built the bypass. It’s on US 1 now.
Comment by Other John — August 27, 2010 @ 2:14 pm
CT, I’m pretty sure there would have been. But I’m also sure like Rick mentioned, that all the oddness floating around the NRV of late probably had some level of impact, if indeed they were looking into Falling Branch and they were that unnamed company people tried to keep secret about.
Comment by Other John — August 27, 2010 @ 2:15 pm
Or – is it possible our governor pushed the Mecklenburg location over the NRV in an effort to do everything possible to make Rick Boucher look bad? That would benefit Morgan Griffith in a backhanded way…..
Comment by Steve — August 27, 2010 @ 3:30 pm
You never know. I would not put it past the administration…they’re all politicians and they will do whatever they can to help or hurt other politicians when it’s of benefit to them.
Comment by Other John — August 27, 2010 @ 4:15 pm
I lived in Mecklenburg County years ago. Trust me. They need this WAY more than C’burg does.
Comment by wilbert — August 27, 2010 @ 4:18 pm
I think we need to rethink NRV business promotion to bring these
larger projects into our area. I spent 10 years in Dallas and saw
great high tech growth that carried Dallas through the 86 recession.
I think the political pundits who seem to step forward and claim credit
should cease and desist. Promote right to work laws in Virginia and
industrial park infrastructure renewal and expansion. This will bring
large companies to our beautiful county. Eric Smith a former Blacksburger
should bring Google to Blacksburg. Bill Gates should make Blacksburg
the most wired fiber-optic comunity in joint with Virginia Tech. I have
a Dallas friend filming a movie in Explorer Park this September as a result of Governor McDonnell’s movie tax credit program. We can do more
for jobs in our county..
Comment by Ray Roberts — August 27, 2010 @ 4:36 pm
Wait, wait? How could the Board of Supervisors offer tax breaks and other incentives while its case on that very issue is pending before the state Supreme Court? After all, the board is arguing that it isn’t right for the state to use tax dollars to benefit a private corporation, Norfolk Southern (never mind that the board is using tax dollars for the suit, without asking if _all_ the taxpayers are OK with that). It would be a bit hypocritical to turn around and do the exact same thing for Microsoft just because Microsoft might be a “better” company, or a “clean” company while NS has all those nasty, dirty diesel engines and might bring in more nasty, dirty trucks into Elliston.
Comment by Joe Hokie — August 27, 2010 @ 4:43 pm
Considering how easily manipulated some voters can be, I no longer put much of anything past politicians.
Comment by Sandi Saunders — August 27, 2010 @ 5:09 pm
Congratulations to Mecklenburg..@least it’s in VA. Perhaps there’s a similar unit coming to Montgomery Co. Sure, politics are involved, but Congressman Boucher will prevail due to his stellar record and diligent campaigning.
Whatever is considered for Montgomery Co. will be negatively effected by oddities in a couple of the local government units, until some ‘house-cleaning’ is completed.
@4: Tax-incentives have proven of benefit to S.C., Alabama and other southern states, especially in the automotive manufacturing field. Most incentives have a time-frame allowing for phasing out initial deals. I support reasonable incentives, but the definition of ‘reasonable’ varies!
Comment by Know Nothing — August 27, 2010 @ 6:58 pm
Virginia’s Technology Corridor? Casts doubt on the theory that ‘put a sign on the Interstates and They will come’ doesn’t it.
Comment by David Sowers — August 27, 2010 @ 11:24 pm