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December 17, 2015

eBay invests $412m in US data centre expansion

News: Online seller attracted by $30m tax incentives.


A booming ecommerce market is leading eBay to invest $412 million in the Super Loop Circle, Nevada, US, in plans which will see the creation of one new data centre and the expansion of others in the area.

Representing an investment of $230m, the new hub is set to be built in Storey County, at the Tahoe Reno Industrial Centre in Northern Nevada. It will be located in the same area Tesla is investing $5 billion to build a battery factory.

The company is investing a further $182 million to expand its other data centres in Las Vegas. eBay owns other local facilities in Utah and Arizona.

eBay is also getting a tax incentive of $30 million from the Governor’s Office of Economic Development, according to the Reno Gazette-Journal.

Overall, the eBay will be employing 50 local staff to work in its data centres, while 983 people will be involved in the construction phase.

The state’s Governor Brian Sandoval told AP that attracting the company to Nevada was "like getting LeBron James on the team".

He said: "You will have the largest data centre on the planet [Switch] and less than a mile away, you will have the largest advanced manufacturing facility on the planet [Tesla’s batteries factory]."

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Dean Nelson, eBay’s global data centre strategy, said: "Everything we have invested in the last five years is full. We have outgrown our facilities and have got to expand."

"Up here [in Nevada], you need to actually design and build a data centre. We will be able to serve the world from the United States."

In Q3 2015, eBay had 159 million active buyers and $2.11 billion in revenue. For Q4, eBay has forecast revenues to be between $2.275 billion and $2.325 billion.


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