By JAMES FINK
jfink@bizjournals.com | 716-541-1611

In the final public-sector step before Yahoo! Inc. formally opens a data center in Lockport, a plan to allocate low-cost hydropower will be the subject of a New York Power Authority hearing.

The hearing will be held 3-7 p.m., Sept. 8 at the Niagara Power Project Visitors Center, 5777 Lewiston Road, Lewiston.

Little, if any, opposition is expected.

The New York Power Authority, as part of a handsome regional and state incentive package for Yahoo!, promised 15 megawatts of low-cost hydropower for the center. The company selected a site in Lockport Industrial Park after considering a number of locations elsewhere in New York and other states, thanks in large part to the incentive package and an intensive lobbying effort led by Sen. Charles Schumer.

"Low-cost hydropower from the Niagara Power Project was a linchpin in the decision by Yahoo! to build its new datacenter in Lockport," said Richard Kessel, NYPA president and CEO. "We're confident that the Yahoo! facility will be a magnet for other high-tech industries coming to Western New York.

"This further underscores the great value of the Niagara project - particularly in a down economy - as a major catalyst for spurring jobs and investments. Our hydro allocations are directly linked to tens of thousands of jobs in the region and billions of dollars in capital investments," he said.

The 150,000-square-foot facility is scheduled to have its grand opening Sept. 20. The $180 million project will employ 125 people initially. The first wave of workers is already at the data center.

"Yahoo!, without a question, is a major economic development win for the region," said David Kinyon, executive director, Town of Lockport Industrial Development Agency.

The IDA approved an incentive package for the project last year.

"It was important that we showed support for the project," Kinyon said.