Facebook’s Prineville, OR data center

By Bill Trüb
From the March/April 2013 issue

Data centers are crucial to operations across countless sectors, from retail to information technology, government to biotech, logistics to engineering. Many consumers, however, have little awareness or understanding of just how massive and expensive these facilities are. Large-scale data centers are known to use the amount of electricity equivalent to small towns and, despite many greening initiatives, some centers release a significant amount of air pollution in the form of diesel exhaust. Furthermore, the amount of security necessary to run a successful data center is enormous due to the highly sensitive information and pricey equipment housed in such storage units. So high are these stakes that the Telecommunications Industry Association has even published a document detailing the minimum requirements for the infrastructure of data centers and computer rooms.

But the business of IT is one that changes quickly. The International Data Corporation claims the average data center is nine years old, which is troubling when coupled with research company Gartner’s assertion that data centers more than seven years old are obsolete. In May 2011, Uptime Institute reported that 36 percent of large companies will exhaust their IT capacities within the next 18 months. Yet according to a “Green Data Centers” report by Pike Research,the global market for green data centers segment of the industry is expected to more than double in size in the next four years. It can be overwhelming to try and keep abreast of these fast-moving, ever-changing, air-conditioned rooms of priceless information.

Greene And The Greening Of Data Centers

In an effort to reduce the shocking levels of diesel exhaust that many data centers emit into the atmosphere, the industry is being proactive in finding environmentally sound operating solutions. Aptly-named Nicholas Greene, writer for www.greendatacenterconference.com, penned “Ten of the Biggest Data Center Trends” at the tail end of 2012. Let’s recap a few of his most notable prognostications.

“Cloud Computing’s still got a long way to go before it’s the world-changing behemoth that everyone predicts it will be, but this year saw more and more organizations finding their way to cloud computing, and loving every moment of it,” writes Greene. “Hybrid clouds took off, and Infrastructure-as-a-Service, Software-as-a-Service and Platform-as-a-Service vendors really came into their own. Unfortunately, the great strides cloud computing made this year are going to have some unfortunate side-effects in the near future. Moving forward; scalability is going to be a huge concern: our current data center infrastructure, powerful as it is, might not be able to handle the increased demands of the cloud.”

Greene continues, “2012 also witnessed the birth of the software defined data center. As a direct result of this, we’ve been seeing an increased focus on virtualization with the configuration of the data center’s hardware dealt with by upper-level software. Software Defined Networking, though still in its nascent stages, has the very real potential to revolutionize the way data centers are operated, with new options for resource optimization, availability, storage, and mobility.”

According to Greene, the push for eco-sensitive options has been a success. “The environment has been getting a lot of love from data center operators this year,” he says. “We’ve been seeing a massive shift towards green computing throughout 2012, with big names such as Apple and Microsoft hopping on the environmental friendliness train. The looming threat of global warming, coupled with the obvious energy savings one accrues as a result of green initiatives (not to mention the good press an organization can receive) have combined to make green IT a near-integral part of data center design.”

Greene gives us the word of the year: “Server racks are becoming denser and denser as many organizations consolidate their data centers in order to save on energy and real-estate costs. Consolidation is the word of the year, as data centers grow smaller and more powerful and energy management turns from a good idea to an integral discipline for data center operation.”

And finally, openness and transparency is where the industry is headed, led by kingpins Facebook and Google. “In April 2011, Facebook founded the Open Compute Project—an initiative which I’m sure that many initially took as a very bad April Fool’s Joke. It wasn’t—and it’s been gaining steam ever since,” asserts Greene. “The notion that data centers should be defined by their software infrastructure rather than their physical hardware seemed novel at the time, but Facebook has demonstrated that it’s got real value. Even organizations that are typically secretive to the point of paranoia, such as Google, have loosened up a bit, giving us some insight into the inner workings of some of their facilities. Maybe one day in the future, Facebook’s ideals will pay off, and we’ll be rewarded with true transparency in data center operations.”

Google Searches, Hits On South Carolina

Speaking of such Internet giants, Google held a groundbreaking ceremony in January in Berkeley County, SC to announce it will expand its operations at the Mt. Holly Commerce Park. The additional $600 million in investment at the site brings Google’s total investment to more than $1.2 billion. The data center in Berkeley County currently houses thousands of servers to support services such as Google search, Gmail, Google+ and YouTube. As Google’s services grows, the company must ramp up its data centers to meet demand.

Google’s data center in Berkeley County, SC. Google is using the rainwater retention pond as another means for cooling its data center.

“Today’s announcement is another big win for South Carolina,” says Governor Nikki Haley. “We celebrate Google’s decision to grow its footprint in Berkeley County with a $600-million investment. When a world-class company like Google decides to expand in the Palmetto State, it shows we are providing the sort of business environment that helps foster success.” Many states aggressively pursue data center business through various tax incentives because data centers are often a boon for local economies.

“South Carolina and the Berkeley County community are great places in which to work and grow,” says Data Center Operations Manager Eric Wages. “When Google first announced plans to come to Berkeley County in 2007, we were attracted to not only the energy infrastructure, developable land and available workforce, but also the extraordinary team from the local community that made us feel welcome. Today’s announcement is just a continuation of our investment in the state. Google is proud to call Berkeley County home.”

Google first announced plans for a South Carolina data center in 2007, making an initial investment of $600 million to get the center up and running. In November 2010, Google announced plans to construct a second building at the site, which is now serving traffic.

Google is also involved in supporting science and mathematics programs in South Carolina’s schools. Since 2008, it has awarded more than $885,000 in grants to local schools and nonprofits. It also has helped implement a free, downtown Wi-Fi network in Goose Creek.

“Google has been a great partner, exceeding expectations when the data center was first proposed,” says Berkeley County Supervisor Dan Davis. “They have invested capital, created good jobs and more importantly partnered with local businesses to help them do business better.”

“When our community came together to develop this business park, we wanted to attract leading companies that would establish deep roots and grow,” says South Carolina Sen. Paul Campbell. “Google’s expansion is an example of how Berkeley County can serve the needs of the world’s most innovative and dynamic companies. I hope Google’s growth here prompts other growing businesses to put down roots.”

Facebook ‘Likes’ Oregon

Facebook stores more than 240 billion photos, with users uploading an additional 350 million new photos every single day. To house those photos, Facebook’s data center team deploys 7 petabytes of storage gear every month. But what do you do with an exabyte of digital photos that are rarely accessed? That was the challenge facing Jay Parikh, Vice President of Infrastructure Engineering at Facebook.

The team decided a dedicated data center at its Prineville, OR campus could house older photos in a separate “cold storage” system and would dramatically slash the cost of storing and serving these files. The facility has no generators or UPS systems, but can house up to an exabyte of data.

Last year, Facebook built a 62,000-square-foot data center on its Prineville campus to house its cold storage, which can house 500 racks that each hold 2 petabytes of data, for a total of 1 exabyte of cold storage. Similar facilities will be built at Facebook’s data center campuses in North Carolina and Sweden, Parikh said.

The cold storage data center has no generators or uninterruptible power supply (UPS), with all redundancy handled at the software level. It also uses computer room air conditioners (CRACs) instead of the penthouse-style free cooling system employed in the adjacent production data centers in Prineville.

Most importantly, each rack uses just 2 kilowatts of power instead of the 8 kilowatts in a standard Facebook storage rack. But Parikh said it will be able to store 8 times the volume of data of standard racks. Not many companies face storage challenges at the kind of scale seen at Facebook. But Parikh believes more companies will be confronting these massive storage issues.

“Our big data challenges that we face today will be your big data challenges tomorrow,” he says. “We need to keep coming up with advanced solutions to our storage problems. The most important innovations are the problems people solve before the scale of the problem emerges. I believe big data is one of those problems. And we won’t keep up unless we work together.”

Facebook completed a second huge data center on its campus in Prineville, Oregon in 2012. The facility is similar to its existing 300,000-square-foot data center, Facebook Data Center Manager Ken Patchett announced at a Prineville City Council meeting.

“We believe the construction of the phased expansion of Building 2, and the operation of Building 1, staffing and supplying of the Prineville Data Center will continue to have a positive impact on the Crook County-Prineville economy,” Patchett told the city officials.

The second building in Prineville created up to 450 construction jobs, with the project lasting approximately one year. At the time, Facebook said it would add 10 full-time jobs in Prineville, where it currently employs 54 full-time employees providing building maintenance, security and server maintenance. The Prineville project is Facebook’s first company-built facility, and is optimized from the two-story structure right down to the servers to reflect the company’s vision for energy efficient data center operations.

CoreSite Realty Picks NJ

CoreSite Realty has purchased a 280,000-square-foot building in Secaucus, NJ for a new data center, and expects to invest $65 million to buy the facility and redevelop the initial phase of 65,000 square feet of data center space.

The facility, which will be dubbed NY2, is the company’s first data center in New Jersey and a sign of continuing activity in the northern NJ market. CoreSite already has a site in New York City and the Secaucus facility will mark an important expansion for the provider.

CoreSite is under contract to acquire the building, with the acquisition expected to close in early February. The 280,000-square-foot facility sits on 10 acres of land, which allows additional data center development as the market demands. At full build out, CoreSite expects it will offer 19 critical megawatts of capacity. Construction will start in Q1 2013, with turn-key capacity expected to be available in Q4 2013.

CoreSite intends to ensure the availability of high-capacity and high-speed lit services as well as a robust dark-fiber tether between NY2 and CoreSite’s NY1 location at 32 Avenue of the Americas in Manhattan, enabling CoreSite to provide seamless interconnection across its New York campus.

The company has been aggressively building out data center campuses across America. Focusing on network centric and cloud oriented applications, these data center campuses are network-dense.

“CoreSite’s entry into Secaucus is an important step in the execution of our strategy to extend our U.S. platform supporting latency-sensitive customer applications in network-dense, cloud-enabled data center campuses,” says Tom Ray, President and Chief Executive Officer, CoreSite. “Our New York campus is designed to meet performance-sensitive customer requirements supported by our location at the nexus of robust, protected, low-latency network rings serving Manhattan as well as global cable routes to Chicago, Frankfurt, London, and Brazil. Additionally, customers are able to connect directly to service nodes for Amazon Web Services Direct Connect.”

The Secaucus facility follows the launch of CoreSite’s previously announced 15 data center, located in Reston, VA. CoreSite’s national platform spans nine US markets and includes more than 275 carriers and service providers and more than 15,000 interconnections.

The availability of direct connections to high speed networks in NY2 will be of particular interest to financial firms looking to reduce latency and improve performance. Three network service providers have pre-committed to serve NY2, consisting of CoreSite partners Sidera Networks, Zayo, and Seaborn Networks, each of which provides high-performance network support to the financial services, cloud and network communities.

“The new CoreSite data center in New Jersey fits perfectly with Sidera’s growth strategy,” says Clint Heiden, President, Sidera Networks. “This expansion gives CoreSite customers immediate access to over 40 financial exchanges and the Sidera Xtreme Ultra-Low Latency Network.”

In addition to the new facility, the company also announced an Open Cloud Exchange, an initiative looking to offer a range of cloud services to customers. The Exchange will offer best-of-breed partnerships and services from a broad range of providers. It capitalizes on demand for hybrid infrastructures, letting Enterprises, Managed Service Providers (MSPs) and Systems Integrators (SIs) in CoreSite facilities connect directly, via a single resource, to the cloud service providers of their choice. This provides customers with flexible options to securely and easily connect to all types of cloud offerings.

“We’re building the industry’s premier home for cloud services,” says Jarrett Appleby, COO, CoreSite. “With networks—the oxygen for cloud services—as the foundation, adding the industry’s leading cloud providers will create best-in-class scalability, management, automation, software, and many-to-many exchange capability. The Open Cloud Exchange offers our customers enormous provider flexibility, guaranteed performance, real-time monitoring, and easy management of cloud infrastructure services.”

The initial four best-of-breed partners in Open Cloud Exchange are CENX, Rightscale, RiverMeadow Software and Brocade.

• CENX will provide its CENX Automated Ethernet Lifecycle Management software specially designed for CoreSite’s Open Cloud Exchange, enabling easy, single sign-on management of Layer 2 cloud infrastructure services and full MEF CE 2.0 compatibility.
• RightScale, will provide its platform for deploying and manage business-critical applications across public, private, and hybrid clouds. RightScale offers efficient configuration, monitoring, automation, and governance of cloud computing infrastructure and applications.
• RiverMeadow Software will deliver its automated cloud onboarding SaaS developed specifically for migrating servers and workloads into and between Carrier Service Provider Clouds.
• Brocade will provide the hardware infrastructure and switching logic at the heart of the Open Cloud Exchange.

Planned future enhancements include the ability to connect to providers across multiple CoreSite locations within the same metro area; connections between customers and providers in various on-net buildings throughout the country; and the Choice between numerous software and services providers to support performance sensitive customer applications through a marketplace portal. The service is available immediately in seven campuses: Los Angeles, San Francisco Bay Area, Chicago, New York, Northern Virginia, Boston, and Washington, DC.

In addition to this monster of a facility from CoreSite, Northern New Jersey has been no stranger to activity these last few months. Internap announced a 100,000-square-foot project in Secaucus last October, its third in the NY Metro region, to address growing demand. With its supply of data center space in northern New Jersey running low, Digital Realty recently announced construction in Clifton.

Apple Blossoms In NC

Apple currently is building huge new data centers in three states, including the North Carolina iDataCenter. Meanwhile, it is leasing large quantities of data center space in California’s Silicon Valley.

Many of the largest cloud computing providers opted to lease new Internet infrastructure in 2012, according to new data from a veteran market watcher. The report highlights the shifting tides in the “buy or build” decision, in which geography and market economics are contributing to a two-tier infrastructure for many of the largest Internet players, with footprints split between company-built data centers and wholesale space.

Apple, Facebook and Microsoft were among the largest consumers of turn-key “wholesale” data center space in 2012, according to Jim Kerrigan, Director of the Data Center Group at Avison Young. Microsoft leased 12 megawatts of new wholesale space in 2012, with Facebook (10 megawatts) and Apple (8 megawatts) not far behind.

The trend is notable because all three companies have recently been building their own massive data center facilities. Facebook has 1.5 million square feet of data center space that is either built or nearing completion, while Apple has finished its huge iDataCenter in North Carolina and is building new facilities in Oregon and Nevada. Microsoft has built its own server farms in seven sites around the U.S. and Europe over the past 5 years.

After years of building huge data centers in remote areas, in 2012 the geographic focus shifted back to historic Internet hubs in northern Virginia, Silicon Valley and Chicago. Apple and Facebook have moved armadas of servers to rural locations in North Carolina and Oregon that offer cheap power and cheap land. Cloud builders will continue to do this going forward, but a portion of their infrastructure must always be housed near the Internet’s key intersections, where they can connect with dozens of other networks. Both land and power are more expensive in these Internet hubs, resulting in different economics for large-scale new construction. That’s why the largest wholesale data center providers have a large presence in these markets.

General Motors Gets Specific In Georgia

General Motors announced plans to hire approximately 1,000 high-tech workers to staff its new Information Technology Innovation Center near Atlanta. The automaker needs software developers, project managers, database experts, business analysts and other IT professionals for the third of four centers in the United States.

“Locating this center in Atlanta makes good business sense,” says GM Chief Information Officer Randy Mott. “We can draw from a deep pool of high tech expertise through the surrounding colleges, universities and talent residing in the area.”

“This Innovation Center is exactly the kind of employer we want in the state,” says Georgia Gov. Nathan Deal. “The information age will be with us for a long time, and attracting companies such as GM that are on the cutting edge of manufacturing and technology is a huge win for Georgia.”

Mott is leading a rebalancing of information technology at GM under which the majority of IT work will be done by GM employees instead of being outsourced, which has been the GM model for most of the last three decades.

“We look to the Innovation Centers to design and deliver IT that drives down the cost of ongoing operations while continuously increasing the level and speed at which innovative products and services are available to GM customers,” Mott says. “The IT Innovation Centers are critical to our overall GM business strategy and IT transformation.” The location of the fourth site will be announced at a later date.

Gartner’s View On Cloud Computing

Drue Reeves, Gartner’s Vice President and distinguished analyst, recently outlined five trends that will transform the data center industry for Computer Weekly. Reeves’ expert predictions focus heavily on cloud computing, which requires the use of computing resources (both hardware and software) that are delivered over a network, usually the Internet. The name comes from the use of a cloud-shaped symbol as an abstraction for the complex infrastructure it contains in system diagrams. Cloud computing entrusts remote services with a user’s data, software and computation. Here are Reeves’ five trends, in his own words, for the future of data centers.

• Hybrid IT: Perhaps the greatest effect of public cloud computing on IT concerns operations. IT organizations realize that not only do they need to compete with public cloud service providers (CSPs), but also act as intermediaries between internal customers and all IT services (internal or external). IT organizations are becoming brokers of a set of IT services hosted partly internally and partly externally — that is, of hybrid IT. As intermediaries, IT organizations can offer internal customers the price, capacity and provisioning speed of the external cloud, and the protection and security of the internal cloud.
• Internal clouds: When businesses grow accustomed to consuming IT as a service, IT organizations will be compelled to build internal clouds. Unfortunately, building an internal cloud is hard work and few blueprints exist. Although vendors are building products that will help customers build internal clouds, there is no turnkey solution. IT organizations will struggle to cobble together the necessary pieces to build internal clouds. Nevertheless, building them will be a key data center trend in 2012 because of the need to compete with external cloud computing.
• Hybrid clouds: Hybrid clouds are connections between two clouds, usually an internal private cloud and an external public cloud. They are constructed using software that enables applications and data to migrate more easily between clouds. For example, many applications depend on identity management systems to authenticate users, have gigabytes of data, and have input/output latency dependencies for storage. These attributes often prevent applications from migrating to the external cloud, but hybrid cloud solutions them in unique ways. For example, hybrid cloud software can enable WAN acceleration and VPN connections between clouds that allow IT organizations to keep application services and critical data in the internal cloud, and to move the workload itself to the public cloud. As IT budgets continue to shrink and capital resources remain scarce, hybrid clouds will become a more popular option for augmenting IT capacity and enabling disaster recovery than building another data center or signing a long-term outsourcing agreement.
• User-centric computing: To compete in a global market and retain key employees, organizations often have to accommodate staff who live in remote locations and use personal devices for work. Some organizations are attempting to radically reduce the operational expense of supporting numerous desktop devices for large groups of users with various application requirements. These needs create new challenges for IT organizations to secure data; back up data; support smaller, less functional devices; and support a broader range of devices. Therefore, many IT organizations are rethinking their desktop and mobility strategies and adopting a user-centric, rather than a device-centric, point of view.
• Data center efficiency: Competing with the external cloud requires IT organizations to strive for hyper-efficiency in their data centers. If critical data and applications are to be housed in an internal private cloud, IT organizations must deliver internal IT services in an efficient, cost-effective manner. This requires them to squeeze further costs out of their data centers by virtualizing as many applications as possible, using storage efficiency technologies such as data deduplication, and buying servers that enable them to maximize space and power and to consolidate applications.

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By the time the damaged wellhead was capped–nearly three months after the explosion–more than 5 million barrels of oil had leaked into the Gulf. That’s almost 20 times more than what seeped out of the Exxon Valdez off the coast of Alaska in 1989.

The five states that were impacted by the Deepwater Horizon disaster (including 665 miles of contaminated coastline), Gulf Coast business owners, the federal government and BP have spent the past three years dancing a slow legal tango that has assessed clean-up costs, fines and other liabilities.

The British oil giant estimates its overall liability for the catastrophe could eventually top $42 billion; BP has sold off significant assets to generate cash for the payouts.

In December, a federal judge approved the Deepwater Horizon Economic and Property Damages Settlement agreement, which covers individuals and businesses in Louisiana, Mississippi, Alabama, and certain coastal counties in eastern Texas and western Florida, as well as specified adjacent Gulf waters and bays. BP says it has set aside about $8 billion to cover these economic and property damage loss claims (the agreement does not set a cap on the liability), of which about $1.87 billion has already been paid out (the overall settlement includes a guaranteed $2.3-billion fund to compensate seafood industry businesses damaged by the spill).

Meanwhile, a trial underway in New Orleans will determine civil claims under the Clean Water Act which could amount to more than $17 billion; billions more could be assessed after damage claims from Gulf Coast states are adjudicated; and a third set of claims covering natural resource damage has yet to be filed.

While the overall scope of the settlements is still taking shape, a bureaucratic framework has been put in place to distribute these funds.

In 2011, the  RESTORE Act established a Gulf Coast Ecosystem Restoration Council, which is comprised of governors from the five affected States, the Secretaries from the U.S. Departments of the Interior, Commerce, Agriculture, and Homeland Security as well as the Secretary of the Army and the Administrator of the U.S. Environmental Protection Agency. The Gulf States recommended and President Obama appointed the Secretary of Commerce as the Council’s Chair.

The RESTORE Act dedicates 80 percent of all administrative and civil penalties related to the Deepwater Horizon spill to a Gulf Coast Restoration Trust Fund. It specifies that these funds can be utilized “to restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, coastal wetlands and economy of the Gulf Coast region.”

The RESTORE Act sets forth the following framework for allocation of the Trust Fund:

• 35 percent equally divided among the five States for ecological restoration, economic development and tourism promotion;
• 30 percent plus interest managed by the Council for ecosystem restoration under the Comprehensive Plan;
• 30 percent divided among the States according to a formula to implement State expenditure plans (the formula factors in oiled shoreline, population and distance from the Deepwater Horizon rig);
• 2.5 percent plus interest for the Gulf Coast Ecosystem Restoration Science, Observation, Monitoring and Technology Program within the Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA); and
• 2.5 percent plus interest allocated to the States for Centers of Excellence Research grants, which will each focus on science, technology and monitoring related to Gulf restoration. 

State and local economic development officials throughout the Gulf Coast region are gearing up to receive their share of the Deepwater Horizon disaster trust fund.

According to state officials, Mississippi was the first state to come up with a dedicated plan to use these funds. Gov. Phil Bryant came forward with a GoCoast 2020 plan that lays out how Mississippi will spend its share of funds from the Restoration Council.

Here are some of the projects in Mississippi that eventually may be built using BP disaster funds, as reported by the Mississippi Press (GulfLive.com):

Jackson County, MS is considering using the BP funds to expand Trent Lott International Airport; expand rail services; eliminate 23 railroad crossings in Pascagoula and Moss Point; dredge bayous throughout the county; and replace a county bridge that connects east and west Jackson County, a $20-million project.

Pascagoula, MS is considering a $24.2-million riverfront project which would include Point Park, a beach promenade, Yazoo Lake channel dredging, Inner Harbor repairs and adding public access and a restaurant at Spinnaker Point. Another $424-million project would acquire riverfront property, relocate the wastewater treatment plant, complete Lighthouse Park and connect the bayou north of Lake Yazoo to the lake for improved drainage. A proposed $7.6-million project would convert Lowry Island into a recreational harbor.

Other Mississippi towns are queuing up to deploy the BP restoration funds to expand highways, repair bridges, build water treatment plants and restore wetlands.

Here’s hoping the improvements funded by the Deepwater Horizon settlements outlast the damage to the ecosystem of the Gulf of Mexico and the Gulf Coast wrought by BP’s big oil spill.

Note: There is a poll embedded within this post, please visit the site to participate in this post’s poll.

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The MOU is the memorialization of an agreement with Medient that will create in excess of 1,000 permanent jobs with an initial capital spend in excess of $90 million on a property located 15 miles from the Savannah/Hilton Head International airport.

The project will feature:

• a vertically integrated movie and electronic games production facility with a fully functional campus in the style adopted by the technology industry;
• a pipeline that will facilitate the simultaneous production of movies in multiple languages and electronic games allowing simultaneous release of the same content to diverse audiences, thereby maximizing revenue; and
• a combination of state approved tax credits, technology and equipment efficiencies, and insourcing to dramatically reduce the cost of film production while generating high quality content in the most successful movie genres.

Designed to be environmentally conscious and self-sustainable, the campus will include the application of solar and hydro technologies. The Master Plan has been completed and is being submitted to the County for formal approval. Construction is expected to commence in summer, 2013.

The project will be the largest in the US and as much of the site will be open to visitors, it is also expected to become a major tourist destination in the country.

The Effingham IDA will enter a 20 year capital lease with Medient and provide $1.25 million for site development.

John Henry, CEO of the Effingham IDA, stated, “This project truly has the potential to be a game changer for this entire region. We believe that our area will see significant benefit from this project for years to come.”

Mr. Manu Kumaran, chairman and CEO of Medient, stated, “We are delighted that we have the opportunity to build our ‘Disneyland meets Googleplex’ mega campus in Effingham County, and we are grateful to the Effingham IDA in reaching this agreement in such a professional and efficient manner. We are confident that this exciting project will become a prototype of environmentally sustainable construction, management and living while also promoting a public/private partnership for the region and for the state. We look forward to the project enhancing and participating in the local community, becoming an undertaking of which we can all be proud.”

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General Motors

GM expects to hire more than 4,000 new information technology workers over the next three to five years to staff the four centers. So far, more than 1,000 employees have been hired for the three locations previously announced.

“Recruiting talented IT professionals is intensely competitive,” said GM Chief Information Officer Randy Mott. “To hire the best and the brightest, we need to create employment opportunities that differentiate our company from the competition—location is one such advantage.”

GM chose the innovation center locations by looking at IT talent-rich areas that also offer a strong community, lower cost of living and a high-tech industry presence.

“Operating four IT Innovation centers geographically dispersed across the U.S. allows us to offer employment opportunities to hundreds of thousands of IT professionals, over 75 percent located within a 500-mile radius of any one of the centers,” Mott said.

Four of five students majoring in IT at higher education institutions in each state are within a three-hour drive from a GM IT innovation center. Combined, the four centers have access to more than 7,000 students at more than 150 colleges and universities majoring in information technology-related fields. GM will target recruitment efforts at up to a dozen key universities within each of the four geographic regions.

The Innovation Centers support all aspects of GM’s business. The talent-based hubs of excellence accelerate the development and implementation of innovative IT solutions for existing and future business.

GM is specifically looking to hire talented IT professionals with a range of capabilities, including software development, database administration, and system analysts. Innovation Center employees will support all of GM’s IT needs, including web technologies, end-user applications and systems, dealer systems, factory systems and vehicle technology.

Effective April 1, GM will open a temporary center and begin hiring in Phoenix until its permanent building in Chandler is completed. The new Innovation Center is expected to be operational by first quarter 2014. Interviewing for jobs will begin immediately.

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Georgia is America’s leading source of sustainable biomass, and is ranked third in the US for its biomass potential. Georgia has the world’s largest biomass pellet facility, exporting 750,000 tons a year.

By Donna Clapp
From the January/February 2013 issue

Gov. Nathan Deal announced recently that jobs and investment generated by the Global Commerce division of the Georgia Department of Economic Development (GDEcD) jumped by almost a third during the state’s most recent fiscal year. The department reported that the 403 company expansions or relocations with which it assisted created 28,776 jobs, an increase of 29 percent from last fiscal year, and $5.97 billion in investment, a 32 percent increase.

“These figures are more than numbers—they represent the growth of hope and opportunity for our citizens,” said Gov. Deal. “This tangible evidence of proactive company growth is a sign that not only is our economy on the path to recovery, but also that Georgia’s top-notch business climate has helped us stand out against our competition.”

The 403 projects worked on by GDEcD’s Global Commerce Division during fiscal year 2012, which ended June 30, 2012, also represented an 11 percent increase from the previous year. Of those projects, 36 percent were new locations, high- lighted by companies such as Baxter, Caterpillar and Bed, Bath & Beyond. These three projects alone created 4,100 jobs. The remaining 64 percent were expansions by existing Georgia companies. The largest of these expansions were by Kia Motors Manufacturing Georgia (1,000 jobs) and Home Depot (700 jobs).

Foreign direct investment, which typically creates more jobs per project, accounted for 29 percent of the year’s projects. Kia suppliers such as Mando and Daewon America continued to add jobs to the west Georgia region while others around the state were generated by companies including Kubota, Toyota Industries, Erdrich Umformtechnik, Dinex and SANY.

The Global Commerce Division also managed aggressive outreach to Georgia’s small businesses and entrepreneur-led ventures, with 66 per- cent of companies assisted by the division’s Existing Industry and Regional Recruitment team during FY12 classified as small businesses. More than 1,100 startups and small businesses were assisted through direct contact or resource awareness.

With the increased funding assistance from two federal grants, GDEcD’s International Trade Office also experienced a successful year, facilitating 17 percent more export deals than the previous year, for a total of 311. The trade division also served 1,111 companies, increasing export opportunities it provided to Georgia companies by 121 percent .

AN AUTOMOTIVE POWER RISES

It’s clear from the company expansions listed above that Georgia is having a big growth spurt in the auto- motive industry. This growth came from both U.S.-based companies and international automotive companies as well. Here are a few of the projects that were expanded or relocated to Georgia in 2012:

In November, Gov. Deal, Porsche President and Chief Executive Officer Detlev von Platen and numerous dignitaries broke ground for Porsche North America’s new headquarters at Aerotropolis Atlanta. The 26.4-acre complex will employ 400 workers and create 100 jobs.

“This world-class facility under- scores our commitment to customers and dealers in the United States, which remains the single largest market for Porsche vehicles,” said von Platen. “Today’s ceremony symbolized Porsche putting down permanent roots here in Atlanta, a city we have proudly called home since 1998.”

Porsche’s expansion and new location, announced in May 2011, will consolidate U.S.-based Porsche employees from Porsche Cars North America as well as the company’s financial, business and consulting arms. The site will encompass not only the company’s U.S. headquarters, but also the Porsche Technical Training Center as well as the Porsche Customer and Driving Experience Center, featuring a 1.6-mile test track and handling circuit. The company anticipates beginning operations in the first quarter of 2014.

“Porsche’s new headquarters is a terrific asset to Georgia’s economy and moves us closer to becoming the No. 1 state in the nation in which to do business,” said Deal. “I’m confident One Porsche Drive will become a renowned address that stands for vision, innovation and success—as well as one of the greatest driving experiences in the world for the mil- lions of travelers who arrive in our great state each year.”

The company chose Aerotropolis Atlanta after a global search for the best location to grow and showcase its brand. Proximity to the customer base represented by Hartsfield-Jackson Atlanta International Airport was a key factor in Porsche’s selection of the Aerotropolis site, the location of a former Ford Motor Company plant. Aerotropolis is owned and developed by Jacoby Development.

Partnering to assist the company with its expansion were the Georgia Department of Economic Development, City of Atlanta, City of Hapeville, InvestAtlanta, Fulton County and Clayton County. Blair Lewis, director of the Georgia Department of Economic Development’s Corporate Solutions team, led the project team that assisted Porsche with its location.

Gov. Deal announced just a month later that Mando Corp. will be constructing a new casting facility in Meriwether County, investing $80 million and creating 660 jobs by 2020. Deal called on Mando at its Seoul headquarters during his business mission to Korea in the fall of 2011.

“It was a pleasure to meet with Mando’s leaders in Korea and learn about the company’s plans for growth,” said Deal. “Because Mando has an existing facility here, it was quick to realize how Georgia’s business resources are an advantage for an international company looking to expand. This decision moves us closer to making Georgia the No. 1 place in the nation in which to do business.”

The new 317,000-square-foot, state-of-the-art casting facility in Meriwether Industrial Park will further expand Mando’s footprint in the United States, supporting the company’s manufacture and assembly of a new line of energy-efficient automotive parts. This casting facility will initially serve Mando’s Machining/Electric Power Steering Gear/Electronic Stability Control Module facility in North America.

Mando Corp. initially selected Meriwether County for its third U.S. manufacturing operation in September 2011 and has invested $200 million in a facility that created more than 400 jobs. It selected the Meriwether location for its expansion after a competitive search. With this expansion, Mando will become the largest employer in Meriwether County.

“We are extremely pleased that Mando has chosen our county to locate the new facility, and we certainly appreciate the investment and the new jobs they will create,” said Meriwether County Commission Chairman Nancy Jones. “I am so proud of the total spirit of cooperation by all parties, to make this expansion happen and grow our industry in Meriwether County.”

Mando was assisted with its expansion by the Georgia Department of Economic Development, the Meriwether Industrial Development Authority and the Meriwether County Commission. Georgia Department of Economic Development project manager EJane Caraway led the state’s project team. Hee-jung Shin, director of the state’s Korean office, also assisted with the project.

“Georgia’s labor climate is ranked No. 1 in the nation, so it’s not surprising that our existing industries are thriving,” said Cummiskey. “It’s important to note, though, that partnerships like the ones in this part of the state play a critical role in growing companies while retaining jobs in Georgia.”

Just a month later in the beginning of January 2013, Gov. Deal announced that yet another automotive company, General Motors will open an IT Innovation Center in Roswell, GA creating 1,000 high- tech jobs and investing $26 million. The move is part of GM’s company- wide shift to a new operating model to support its global business goals.

GM will purchase a 228,000-square-foot former UPS facility on Warsaw Road in Roswell for the Innovation Center, the third of four such centers it is opening in the United States to strengthen its internal innovation capabilities as part of the company’s transformation to improve performance, reduce the cost of on-going operations and increase its delivery of innovation. GM will hire software developers, project managers, database experts, business analysts and other IT professionals for the Innovation Center in Roswell. The company will begin recruitment immediately and anticipates adding approximately 1,000 new employees, recent college graduates as well as seasoned professionals, over the next three to five years.

The Georgia Department of Economic Development partnered with the city of Roswell to assist GM with its location. Blair Lewis, director of the Corporate Solutions group at the Georgia Department of Economic Development, was the project man- ager for the state. “It’s great to have a significant General Motors presence in the state once again,” GDEcD Commissioner Chris Cummiskey said.

The post BUSINESS REPORT: GA Notches Record Job Growth And Investment In 2012 appeared first on Business Facilities.

Jack Rogers, Editor in Chief, Business Facilities

From the January/February 2013 issue

It’s become very stylish to have animals pick the winners of major sporting events. After Germany’s Paul the Octopus wrapped his tentacles around soccer’s World Cup a couple of years ago, all sorts of creatures got into the act. As this is being written, Princess the Camel is vying to make Super Bowl history by snorting at five winners in a row.

Here at Business Facilities we think relying on our four-legged (or eight-legged) friends to make the tough calls is a cop-out. So we make sure our top awards are the result of a comprehensive vetting process involving industry experts and valid metrics.

The quality of the big-ticket projects that went head to head in our 2012 Economic Development Deal of the Year competition forced our blue-ribbon panel of judges to bring their A-game to the scoring. If there’s a common thread running through the winning projects, it’s the transformative potential of each of them.

Our Gold Award winner, Baxter’s $1.3-billion investment in Georgia, moves the Peach State into the front ranks of bio/pharma players; Sasol’s petrochemical complex in Louisiana, our Silver standard-bearer, is a huge bet on the future of gas-to-liquids energy conversion; and Apple’s decision to put its global Ops Center in Austin, our Bronze winner, cement’s the Texas capital’s growing rep as a high-tech hub.

As always, we congratulate the winners and encourage everyone to get a head start on next year’s contest by using our handy online nomination form at www.businessfacilities.com.

Jack Rogers

Editor in Chief
jrogers@groupc.com

The post FIRST WORD: Making The Call appeared first on Business Facilities.

Already home to world-class research labs at Georgia Tech and the Centers for Disease Control, Metro Atlanta lures another high-tech gem in Baxter’s $1.3-billion bio-pharma investment.

By Business Facilities Editorial Staff
From the January/February 2013 issue

Gold

Project Title: Baxter International Bio-Pharmaceutical Manufacturing Plant
Entered By: Georgia Department of Economic Development

The nominees for Business Facilities’ 2012 Economic Development Deal of the Year Awards competition reflected a diverse cross-section of growth strategies, most of which are built on a foundation of new manufacturing capacity.

Entries from 17 states that jousted for our top awards included a biotech mega-complex in Georgia, a world- class commercial aircraft assembly facility in Alabama, a yogurt plant in Idaho and even a refinery in Philadelphia. All of the contenders held the promise of hundreds of new jobs; the biggest projects offered the potential to transform the economies of entire regions.

As always, our award recipients were selected by a blue-ribbon panel of industry experts who carefully reviewed project details provided by the finalists. The task of separating the wheat from the chaff was especially challenging for our 2012 awards, as all of the nominees were worthy contenders.

Projects nominated for Business Facilities’ annual Economic Development Deal of the Year competition are asked to submit an Economic Impact Analysis for the project (using standard analysis methods including RIMS II, REMI or IMPLAN) and a narrative detailing how the project came together.

Our judging panel, including leading site selection consultants, evaluates the overall impact of the project and assesses the effectiveness and innovation of the location’s approach to landing the deal. Key factors in this evaluation include creative use of incentives, regional cooperation, partnerships with higher education resources, potential for growth and execution of overall economic development strategy.

The judges have spoken and Baxter International’s decision to make a $1.3-billion investment in Georgia is our 2012 Economic Development Deal of the Year Gold Award winner.

The Baxter bio-pharmaceutical facility, an integrated campus which will include three main manufacturing components as well as warehousing, utilities and lab support facilities, is expected to directly create 1,800 jobs with an economic impact of $6.2 billion.

Over a 10-year period, the bioscience complex will generate an overall regional economic impact estimated at nearly $13 billion, creating more than 8,700 direct, indirect and induced jobs. The campus will be located in Covington, GA in Stanton Springs, a 1,620-acre master-designed industrial park west of Interstate 20 at the intersection of Newton, Walton, Jasper and Morgan counties.

Artist’s rendering of Baxter International bio-pharmaceutical campus in Georgia.

Baxter’s new biologics manufacturing facility will include an advanced plasma fractionation facility, giving the bio/pharma giant additional capacity for testing and purification of its medications. Products to be made at the Georgia site will include immunoglobulin treatments for patients with immune deficiencies and albumin products used as plasma-volume replacement therapies in critical care, trauma and burn patients.

“Baxter’s decision to come to Georgia marks a new era in the growth of our biosciences industry and will have a far-reaching impact on our economy,” Gov. Nathan Deal said when the project was announced. “We are honored to welcome this flagship company to Georgia and proud that our state’s vast resources for the biomedical field will assist the company with the groundbreaking medical advances it is renowned for.”

Deerfield, IL-based Baxter makes medical devices, pharmaceuticals and biotechnology products with a focus on hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions. The company’s 2011 revenue was $13.9 billion; it employs about 19,000 U.S. workers and has 14 plants, including three in Puerto Rico.

According to the Georgia Department of Economic Development, Baxter will get about $80 million in state incentives, including $65.6 million based on the number of jobs it will create, and a $13.7 million project development grant.

“This mega-project will anchor Georgia’s thriving bioscience sector for years to come, moving the Peach State into the front ranks of national biotech players,” Business Facilities Editor in Chief Jack Rogers said.

Rogers said BF’s judging panel was particularly impressed by the regional cooperation that brought this project to fruition, and the flexibility shown by state and county agencies in tailoring solutions to meet Baxter’s needs. Baxter narrowed the location search to four candidates internationally in 2009.

The entities involved in landing the project included the Georgia Department of Economic Development, the Joint Development Authority of Walton, Newton, Morgan and Jasper Counties and the Technology Park of Atlanta.

The quick turn-around time between the site selection decision announcement last April and construction of primary facilities in the Baxter project is unprecedented, Rogers noted.

“Baxter announced its decision in April and by August 1 ground was already broken on a 1-million- plus-square-foot facility,” he said. “Georgia’s willingness to cut red tape will be followed by a ribbon-cutting on a world-class bioscience complex.”

Construction of the first manufacturing buildings at the new Baxter campus is expected to be completed in 2015, with full commercial production commencing in 2018.

The Metro Atlanta plant will be Baxter’s third in the Southeast; it also has plants in North Cove, NC, and Cleveland, MS. According to a Triangle Business Journal report, Baxter International executives toured sites in Granville County, Wake County and Lee County in North Carolina before selecting the Covington, GA location.

Metro Atlanta already is home to several major research institutions, including Emory University, Georgia Tech and the federal Centers for Disease Control and Prevention.

Baxter’s plant puts Georgia on the map as a player in the life sciences industry, said Mike Cassidy, president of the Georgia Research Alliance. “It’s validation of a long-term strategy to make the state attractive to the life sciences industry,” Cassidy said.

South African energy giant Sasol makes the largest private-sector investment for a single industrial project in U.S. history with its Lake Charles, LA petrochemical complex. In this photo, Louisiana Gov. Bobby Jindal (left) and officials hail Sasol’s mammoth petrochemical project.

Silver

Project Title: Sasol North America Inc.
Entered By: LED, Southwest Louisiana Economic Development Alliance, Port of Lake Charles

One of the largest private-sector investments for a single industrial project in U.S. history is our 2012 Economic Development Deal of the Year Silver Award winner.

Sasol Ltd., a global energy company based in South Africa, decided that Louisiana’s highly developed pipeline infrastructure is perfectly suited to its plans to develop a $10-billion gas-to-liquids processing plant that will enable it to tap into the natural gas bonanza in the U.S. emanating from abundant shale gas reserves.

In addition to the processing plant, which will yield 96,000 barrels/day of premium fuels, Sasol North America also plans to build a $4.5-billion cracker unit at its Lake Charles Chemical Complex in Westlake, LA. The cracker will produce up to 1.4 million tons annually of ethylene used to make plastics.

The new facilities in Calcasieu Parish will result in the creation of more than 5,000 permanent jobs in the Southwest Louisiana region, in addition to the 5,500 construction jobs that will be engaged in building the project through 2020. The expanded Lake Charles complex will have a direct economic impact in the region estimated at more than $29 billion over the next 20 years.

BF’s judging panel was particularly impressed with Louisiana’s willingness to go the extra mile in securing land options for the project, the customized incentives package offered to Sasol and the state’s creative use of LED’s GIS mapping in presenting its proposal to the energy giant.

Using a multi-layered GIS map displayed on an iPad, LED officials were able to show site details, utilities, nearest rail access, proximity to the river and the Port of Lake Charles during the first site visits by the Sasol team. According to LED, the introduction of the new GIS mapping enabled Southwest Louisiana to pull ahead of a Canadian province that was competing for the project.

In announcing the mega-deal, Gov. Bobby Jindal said the $14.5-billion petrochemical complex “will bolster Louisiana’s position as the No. 1 exporter of energy in America.” Gov. Jindal also noted the Lake Charles complex will represent a huge new source of demand for natural gas in the state, including gas extracted from deposits in the Haynesville Shale formation.

The Sasol project was a joint effort involving Louisiana Economic Development, Southwest Louisiana Economic Development Alliance and the Port of Lake Charles.

To secure the project, Louisiana offered Sasol a custom incentive package that includes a performance-based grant of $115 million for land acquisition and infrastructure costs associated with the facility. Sasol also will receive the services of LED FastStart™, the nation’s No. 1 state workforce training program.

In addition, the company will qualify for Louisiana’s new Competitive Projects Payroll Incentive (up to 15 percent payroll rebate for each GTL job) and Quality Jobs Program (up to 6 percent payroll rebate for each ethane cracker job).

One of the largest grants in the history of the Texas Enterprise Fund and local property tax abatements bring Apple’s primary operations nexus to the Texas state capital.

Bronze

Project Title: Apple Inc. Americas Operations Center
Entered By: Austin (TX) Chamber of Commerce

Apple’s selection of Austin, TX as the site for its new $304-million Operations Center is the Bronze Award winner in Business Facilities’ 2012 Economic Development Deal of the Year competition.

The new facility, which will increase Apple’s workforce in Austin to more than 6,700, will serve as the primary operations nexus for the company in the Americas outside of Apple’s global headquarters in Cupertino, CA, centralizing accounting, human resources, sales, marketing and finance.

State, county and local agencies came together to put together a package for Apple that sealed the deal in an intense site-selection battle for the operations center. The Austin Chamber of Commerce, Travis County and the Governor’s Office of Economic Development and Tourism were key players in bringing the project to fruition.

“Texas put down a marker with an aggressive incentives package which made it clear that the Lone Star State did not intend to be outgunned for this project, which turbocharges a strategic growth sector for the Austin region,” said Business Facilities Editor in Chief Jack Rogers.

The state of Texas awarded one of the largest grants from the Texas Enterprise Fund in the history of the program—$21 million—which together with a property tax abatement from the City of Austin and Travis County provided for a total incentive package of $35 million for the operations center. Apple gave candidate locations a three- month window in which to make their proposals.

The new 1-million-square-foot campus in Austin will directly create 3,635 jobs generating about $273 million in new wages over the next 10 years. The Apple facility in Texas will become one of four major global operations centers for the tech giant outside of its California HQ.

The impact of this project on the state is estimated at 16,000 jobs (direct and indirect), $1.4 billion in personal income and an overall Economic Output impact of $5.7 billion.

Austin is no stranger to BF’s annual Economic Development Deal of the Year competition. The $3.6-billion expansion of Samsung Austin Semiconductor’s huge chip fab complex was our 2010 Deal of the Year Gold Award winner.

Samsung has committed to investing more than $13 billion in the Austin facility, which has vaulted Texas into second place among national leaders in semiconductors, behind only California. The 2010 project netted more than 7,600 new jobs (direct and indirect) and came with an estimated economic impact of nearly $2 billion over the first three years of operation.

Last year, the Austin Chamber of Commerce was the winner of our first annual Economic Development Excellence Award (Population Greater Than 500k). Austin also had an excellent showing in our 2012 Metro Rankings Report, taking first place in our coveted Economic Growth Potential ranking (employment greater than 450k).

Honorable Mentions

Projects:Airbus Assembly Facility (Mobile, AL Chamber of Commerce); eBay Campus (Utah Governor’s Office for Economic Development); Caterpillar Production Plant (Georgia Department for Economic Development); Bridgestone Americas Tire Plant (South Carolina Department of Commerce).

Gov. Robert Bentley (second from right) congratules Airbus officials as they announce the selection of Mobile as the site of the European aircraft giant’s new North American assembly plant.

The number of projects deserving of recognition in our annual Economic Development Deal of the Year contest always exceeds the number of awards categories. This year, our judges have selected four entries to receive our Honorable Mention Awards.

Airbus announced in July that it will invest $600 million in an aircraft assembly facility at the Brookley Aeroplex in Mobile. The plant—which will assemble A319, A320 and A321 passenger aircraft—is expected to commence operations in 2015, creating 1,000 new jobs. The assembly facility will hit full capacity in 2018, when it is expected to produce up to 50 aircraft per year.

“Mobile’s selection as the only site in the Western Hemisphere assembling aircraft for Airbus cements Alabama’s status as an up-and-coming aerospace manufacturing giant,” said Business Facilities Editor in Chief Jack Rogers.

Mobile’s victory in the fierce competition for the Airbus plant was the culmination of a seven-year effort by state and local officials to land the prize from Europe’s aerospace giant. The triumph also marked a stunning turnaround from the disappointment of the U.S. government’s reversal of a 2008 decision to award Airbus’s parent, EADS, a huge U.S. Air Force refueling tanker project. EADS had selected Mobile as the site for tanker production, but in 2011 Congress rebid the project and awarded it to Boeing.

The decision by eBay to construct a new 40-acre campus in Draper, UT will directly bring 2,200 new jobs to the state, creating more than $1.6 million in new wages over the next 20 years.

“The ongoing eBay expansion is another success story for Utah’s burgeoning software and IT industry cluster,” Rogers said, noting that industry giants including Microsoft, Twitter, Adobe and IM Flash already have put down roots in the Beehive State.

Rogers added that the Economic Development Deal of the Year judging panel was impressed by the cooperation between eBay and Utah to develop alternative energy resources, including wind energy power generation, which will be used to provide electricity to the Draper facility.

“eBay chose Draper for a customer support center in 1999 primarily because of the quality of the workforce, favorable business climate and proximity to San Jose,” said William Lasher, eBay senior director. “As the Draper facility grew, we became increasingly aware that the business conditions in the state were ideal.”

The Economic Development Tax Increment Financing eBay received from the state, coupled with incentives from local cities, were helpful when eBay made decisions about whether to grow the Draper operation during the past 10 years (creating 1,000 new jobs). Lasher said. eBay was especially impressed with the level of involvement from state and local economic development agencies in working with eBay to solve its problems and meet its needs, he added.

Caterpillar reviewed proposals from more than 100 locations in the U.S., as well as sites in Canada and Mexico, before selecting Athens, GA to be the home of its new $200- million factory. The Georgia plant, which will employ 1,400, will manufacture construction equipment previously produced in Sagami, Japan.

Earth-moving equipment like the unit above will be produced at Caterpillar’s new plant in Athens, GA.

An emphasis on the availability of workforce training, including presentations from Georgia Quick Start and Athens Technical College, helped seal the deal. The Georgia Department of Economic Development, the Economic Development Authorities of Athens-Clarke and Oconee counties, and Electric Cities of Georgia all played a role in shaping the proposal for the Caterpillar project.

“Georgia put its best foot forward in presenting all of its resources to this industry giant,” Rogers said.

The Caterpillar project will have an estimated direct Economic Output impact of $2.92 billion over the next 10 years, directly creating more than $78 million in new wages. When it made the decision to put the new plant in Athens, Caterpillar already was operating facilities in Griffin, LaGrange, Toccoa and Thomasville, GA, so the equipment giant was very familiar with the benefits of locating in a manufacturing-friendly state.

Bridgestone Americas $1.2-billion investment in the construction of a new 1.5-million-square-foot off-road radial (ORR) tire manufacturing facility on a site in Aiken County, SC—and a 474,000-square-foot expansion of an existing tire plant nearby—marked the largest single initial capital investment in South Carolina’s history.

“Bridgestone’s decision to transplant technology and manufacturing to South Carolina that had been exclusive to its facilities in Japan is another indication of the Palmetto State’s emergence as a world-class manufacturing competitor,” Rogers said.

The Bridgestone facility is expected to have a direct Economic Output impact of nearly $2 billion over the first two years of operation, directly creating more than $362 million in new wages.

The new ORR manufacturing plant is part of the company’s global sourcing strategy. The facility will be a greenfield site in the Sage Mill Industrial Park in Aiken County. Previously, large and ultra-large ORR tires had been produced exclusively at Bridgestone’s
Shimonoseki and
Kitakyushu plants
in Japan. Bridgestone will install
ORR production
technologies developed in Japan in
the new plant to
more effectively
respond to customer needs and growing global demand. The new plant will be a green facility—it is expected to meet LEED Construction Certification environmental standards.

Business Facilities congratulates all of the winners in our 2012 Deal of the Year competition. Nominations are now being accepted for our 2013 contest here.

The post COVER STORY: 2012 Economic Development Deal of the Year Awards appeared first on Business Facilities.

“Georgia is the ideal place for Calpis to expand in the United States,” said Georgia Gov. Nathan Deal. “International firms such as Calpis find success here not only because Georgia is one of the top markets for its products, but because the state is a hub for fast, efficient outreach to other markets in North and South America. The company’s strategic decision to locate here moves us closer to becoming the best place in the nation in which to do business.”

Calpis will construct a facility in Peachtree City Industrial Park to produce its direct-fed microbial product, CALSPORIN^® animal feed ingredients, which is used widely in the livestock industry to supply a naturally occurring microorganism. Operations are anticipated to begin in April 2014, and Georgia Quick Start workforce training program will assist the company with its training needs.

“Locating this plant in Georgia will enable us to better serve the industry and to utilize the abundant workforce. Peachtree City provides us good access to our users as well as transportation convenience both domestically and internationally,” said president of Calpis America Inc. Masato Yoshida.

The Georgia Department of Economic Development partnered with the Fayette County Development Authority to manage this project. Scott McMurray, director of the Georgia Department of Economic Development’s Logistics, Energy, Agriculture and Food Processing industry team, assisted Calpis on behalf of the state.

“We are excited to welcome another Japanese company to Fayette County,” said Fayette County Development Authority Chair Randy Hayes. “Our proximity to Hartsfield-Jackson Atlanta International Airport and our unique quality of life are going to help Calpis get off to a great start here in Georgia.”

“The company joins more than 370 Japanese businesses throughout the state employing 20,000-plus Georgians. It is our partnerships both at home and abroad that make this sort of success possible,” said Georgia Department of Economic Development Commissioner Chris Cummiskey.

The post Japanese Manufacturer To Open Biotech Facility In Georgia appeared first on Business Facilities.

• Mobile (AL) Area Chamber of Commerce for Airbus’ selection of Mobile as the site of its final assembly facility.
• Utah Governor’s Office of Economic Development for eBay’s Utah campus.
• Georgia Department of Economic Development for Caterpillar’s choice of Athens, GA as the site of its new production facility.
• South Carolina Department of Commerce for Bridgestone Americas’ tire plant.

Airbus announced in July that it will invest $600 million in an aircraft assembly facility at the Brookley Aeroplex in Mobile. The plant, which will assemble A319, A320 and A321 passenger aircraft is expected to commence operations in 2015, creating 1,000 new jobs. The plant will hit full capacity in 2018, when it is expected to produce up to 50 aircraft per year.

“Mobile’s selection as the only site in the Western Hemisphere assembling aircraft for Airbus cements Alabama’s status as an up-and-coming aerospace manufacturing giant,” said Business Facilities Editor in Chief Jack Rogers.

Mobile’s victory in the fierce competition for the Airbus plant was the culmination of a seven-year effort by state and local officials to land the prize from Europe’s aerospace giant. The triumph also marked a stunning turnaround from the disappointment of the U.S. government’s reversal of a 2008 decision to award Airbus’s parent, EADS, a huge U.S. Air Force refueling tanker project. EADS had selected Mobile as the site for tanker production, but in 2011 Congress rebid the project and awarded it to Boeing.

The decision by eBay to construct a new 40-acre campus in Draper, UT will directly bring 2,200 new jobs to the state, creating more than $1.6 million in new wages over the next 20 years.

“The ongoing eBay expansion is another success story for Utah’s burgeoning software and IT industry cluster,” Rogers said, noting that industry giants including Microsoft, Twitter, Adobe and IM Flash already have put down roots in the Beehive State.

Rogers added that the Economic Development Deal of the Year judging panel was impressed by the cooperation between eBay and Utah to develop alternative energy resources, including wind energy power generation, which will be used to provide electricity to the Draper facility.

Caterpillar reviewed proposals from more than 100 locations in the U.S., as well as sites in Canada and Mexico, before selecting Athens, GA to be the home of its new $200-million factory. The Georgia plant, which will employ 1,400, will manufacture construction equipment previously produced in Sagami, Japan.

An emphasis on the availability of workforce training, including presentations from Georgia Quick Start and Athens Technical College, helped seal the deal. The Georgia Department of Economic Development, the Economic Development Authorities of Athens-Clarke and Oconee counties, and Electric Cities of Georgia all played a role in shaping the proposal for the Caterpillar project.

“Georgia put its best foot forward in presenting all of its resources to this industry giant,” Rogers said.

Bridgestone Americas $1.2-billion investment in the construction of a new 1.5-million-square foot off-road radial (ORR) tire manufacturing facility on a greenfield site in Aiken County, SC—and a 474,000-square-foot expansion of an existing tire plant nearby marked the largest single initial capital investment in South Carolina’s history.

“Bridgestone’s decision to transplant technology and manufacturing to South Carolina that had been exclusive to its facilities in Japan is another indication of the Palmetto State’s emergence as a world-class manufacturing competitor,” Rogers said.

Projects nominated for Business Facilities’ annual Economic Development Deal of the Year competition are asked to submit an Economic Impact Analysis for the project (using standard analysis methods including RIMS II, REMI or IMPLAN) and a narrative detailing how the project came together.

The judging panel, including industry experts and leading site selection consultants, evaluates the overall impact of the project and assesses the effectiveness and innovation of the location’s approach to landing the deal. Key factors in the evaluation include creative use of incentives, regional cooperation, partnerships with higher education resources, potential for growth and execution of overall economic development strategy.

Click the highlighted links to read about winners in Gold, Silver, and Bronze along with the winner of BF‘s State of the Year Award.

The post Airbus, Caterpillar, Bridgestone, eBay Earn Honorable Mentions from Business Facilities in 2012 Economic Deal Of The Year Competition appeared first on Business Facilities.

The Baxter bio-pharmaceutical facility, an integrated campus which will include three main manufacturing components as well as warehousing, utilities and lab support facilities, is expected to directly create 1,800 jobs with an economic impact of $6.2 billion.

Over a 10-year period, the bioscience complex will generate a regional economic impact estimated at nearly $13 billion, creating more than 8,700 direct, indirect and induced jobs. The campus will be located in Covington, GA in Stanton Springs, a 1,620-acre master-designed industrial park west of Interstate 20 at the intersection of Newton, Walton, Jasper and Morgan counties.
Baxter’s new biologics manufacturing facility will include an advanced plasma fractionation facility that will give the bio/pharma giant additional capacity for testing and purification of its medications. Products to be made at the Georgia site include immunoglobulin treatments for patients with immune deficiencies and albumin products used as plasma-volume replacement therapies in critical care, trauma and burn patients.

“This mega-project will anchor Georgia’s thriving bioscience sector for years to come, moving the Peach State into the front ranks of national biotech players,” Business Facilities Editor in Chief Jack Rogers said.

Rogers said BF‘s judging panel for the Economic Development Deal of the Year competition was particularly impressed by the regional cooperation that brought this project to fruition, and the flexibility shown by state and county agencies in tailoring solutions to meet Baxter’s needs. Baxter narrowed the location search to four candidates internationally in 2009.

The entities involved in landing the project included the Georgia Department of Economic Development, the Joint Development Authority of Walton, Newton, Morgan and Jasper Counties, Georgia Power and the Technology Park of Atlanta.

The quick turn-around time between the site selection decision announcement in April of this year and construction of primary facilities in the Baxter project is unprecedented, Rogers noted.

“Baxter announced its decision in April and by August 1 ground was already broken on a 1-million-plus-square-foot facility,” he said. “Georgia’s willingness to cut red tape  will be followed by a ribbon-cutting on a world-class bioscience complex.”

Construction of the first manufacturing buildings at the new Baxter campus is expected to be completed in 2015, with full commercial production commencing in 2018.

Projects nominated for Business Facilities’ annual Economic Development Deal of the Year competition are asked to submit an Economic Impact Analysis for the project (using standard analysis methods including RIMS II, REMI or IMPLAN) and a narrative detailing how the project came together.

The judging panel, including industry experts and leading site selection consultants, evaluates the overall impact of the project and assesses the effectiveness and innovation of the location’s approach to landing the deal. Key factors in the evaluation include creative use of incentives, regional cooperation, partnerships with higher education resources, potential for growth and execution of overall economic development strategy.

Click the highlighted links to read about winners in Silver, Bronze and Honorable Mention categories along with the winner of BF‘s State of the Year Award.

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