Apple to spend $1 billion on Reno data center expansion project

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Apple Inc. is planning a massive extension of its data center located in Reno, Nevada, according to the Reno-Gazette Journal, which recently covered a meeting between Apple and the Reno City Council where the project was discussed.

According to the report, Apple plans to invest $1 billion into the project, which will almost double the size of its data center at Reno Technology Park. Apple’s plans were first hinted at in February, when Fortune unearthed building permits for a new 373,893-square-foot data center facility at the site. Those permits revealed a buildout of eight clusters, as well as a new administration building, garage and generator yard. That project, dubbed “Project Isabel,” is most likely the same one.

Apple built the original Reno data center in 2012, and the site is currently home to 14 buildings that encompass over 412,00 square feet of space. The center is used to house some of Apple’s cloud services, including iCloud, iTunes, and the App Store.

According to the Reno Gazette Journal, the new expansion will lead to the creation of “hundreds of jobs in construction and operation.” In addition, the project will also see the construction of a $4 million warehouse facility in downtown Reno, the paper said.

Following the original report, the Reno City Council issued a statement confirming the news, saying its given Apple’s proposal the green light. “Council approved … Apple Inc to purchase approximately half a city block of land to construct a 30,000-square-foot purchasing and receiving facility,” the council said. “The acquisition of the Apple facility will provide economic and fiscal benefits to the City of Reno and Washoe County, Nevada, and will serve as a catalyst to attracting other tenants, people, businesses and economic activity to the district.” the council added in its statement.

In addition, Apple will become eligible for millions of dollars’ worth of tax breaks, the council said. “[Apple’s] agreement to locate the Apple facility in the district was contingent on [Apple] receiving the reimbursement from the developer for an amount equal to a portion of sales and use taxes associated with taxable transactions of [Apple] within the district, including purchases of tangible personal property, such as computer servers and other equipment,” the Council said.

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