econorthwest economic impact prineville’s data center economic development for central oregon

ECONorthwest Economic ImpactPrineville’s data center

ECONOMIC DEVELOPMENT FOR CENTRAL OREGON

• Report prepared by ECONorthwest

– 30-year-old Company

– Economic development, land-use, natural

resources, business, finance

– Measure economic and fiscal impacts

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


• Expenditure Approach

– Capital, payroll, goods & services

– Measured in two phases:

• Capital expenditure (construction)

• Operations & Maintenance (yearly activity)


• Impacts by type:

– Direct (payroll, output, non-labor)

– Indirect (purchases of goods & services)

– Induced (further consumption & investment)


• Capital spending in Prineville

– $15.2 million economic activity


– 148 local jobs

– $1.2 million in sales on lodging, food, retail


• Operations spending in Prineville

– $21.3 million in economic activity


– 111 jobs for local workers


• Operations spending in Prineville

– 55 full-time jobs currently

– Avg. wage = $59,400 (wages + benefits)

– 35% above avg. wages across region


• 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


• FB spending has potent economic effect1. Above average wages support more

consumption-related spending

2. Developed strong supply-chain in Oregon

3. Supply-chain partners support above avg. wages of ($64,200) that support additional consumption-related spending


• 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.”


• What are the trade-offs?– Do data centers use too many resources?• Water, sewer, power

– Is the 15-year tax incentive worth it?


• 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


• 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


• Data center power usage

– Varies based on size and scope

– Average usage 28 MW per 330,000sf

– Data centers pay 100% for power


• 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


• 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


• 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


• Long-term enterprise zone tax incentive

– Helps with job recruitment efforts

– Creates competitive business climate

– Approved by city/county in a public hearing


econorthwest economic impact prineville’s data center economic development for central oregon

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