New Albany News

Company plans to build five data centers


Officials from Compass Data Centers say they plan to build five 21,000-square-feet data centers in the next five years on New Albany Road East in New Albany.

"What makes this (data center project) different from the rest of our data centers is that these are going to be designed to be used by companies that don't have a data center here but need mission-critical components," city spokesman Scott McAfee said. "Most data centers we currently have were built by specific companies to service mission-critical functions for those companies.

"This would be for a company that didn't need to build its own data center, but needed those services."

New Albany City Council on June 4 approved a 65-percent property-tax abatement for seven years on each building.

The company is expected to build one building per year and the abatements would go into effect as each building is constructed, McAfee said.

There are no Compass Data Centers in Ohio now, said Steve Flaig, vice president of marketing for the company.

"What we do is build data centers where our customers want them so we won't build anything or break ground until we actually have a customer that wants to be in that Columbus area," Flaig said. "What we've seen in response to our sales efforts is that there is enough of a demand there in the Columbus area that we want to go ahead and start purchasing the land we are going to need.

"Based on what we've seen, five initial data centers there is equal to the demand that we're seeing for that area."

Flaig said businesses can lease the space or purchase the buildings.

He said the company chooses sites that have access to electricity and fiber optics for Internet access.

The company is expected to invest $61.3 million in the project and to create 26 full-time jobs with an anticipated payroll of $2.1 million when all five buildings are built, according to City Council's legislative report.

McAfee said the project could generate $4 million over the term of the incentives for the city and the New Albany-Plain Local School District, which shares income-tax revenue from developments in the city's business parks.

Compass Data Centers has locations in Nashville and Raleigh, N.C., and can build data centers anywhere, according to its website.