Yahoo deal tied to Verizon line - Silicon Valley / San Jose Business Journal:

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At issue is how much Verizon want tocharge Sunnyvale-based Yahoo (NASDAQ:YHOO) for a “last transmission line that would connect the data center with the telecommunicationas company’s existing high-speed network infrastructure. Yahoo officialsd say the fees are too high while Verizo counters that chargesare necessary, Verizon is also seeking a long-term pact with Yahoo to cover the costs. Yahoo is considering three Western New York sitez forthe 190,000-square-foot data center that coulsd employ as many as 125 people.
Earlietr this week, the approved plans for a 30-acrwe site in the Lockport Industrial Park for the Yahoo is scouting locations inotherf states, including Pennsylvania and Illinois, and has not committed to wherse the center will be constructed. Yahoo’s board of directors may pick a site in Schumer said Thursday he called Verizon chief executives officer Ivan Seidenberg asking for his Afterthe call, both sides agreed to accelerate Schumer said.
“We have workedr too hard and come too closde in our efforts to bringYahoo — and the hundreds of constructionb and permanent jobs that it would provide — to Wester New York to let the deal be derailec at the last Schumer said. “A complex deal in a difficult economi c climate often leads to a situation in which pressurez arerunning high, making it hard for both partiess to get to yes. Afted discussing the ‘last mile’ issue with both it is clear to me that a deal can be The data center would be constructecd intwo phases, with the first in the 108,000-square-foot The jobs created in the centefr are expected to pay between $50,00 and $65,000 annually.
Schumer has been workinvg with Yahoo chief executive office Carol Bartz on the possibility of Western New York landinbgthe center. Yahoo, through its site selectiojn team, has also been working with localo economicdevelopment agencies, including and the . The Verizojn deal is considered one of the key linchpins inthe pitch. The , last month, approved an allocationj of 15 megawattsof low-cost power for The allocation could save the company $100 million over the 15-yeafr abatement period. “Yahoo and Verizon have accelerated negotiations and I am happhyto say, knock on that it looks like they are getting closee to an agreement,” Schumer said.