Rockland Lands Another Major Data Center
Real Estate In-Depth | December 2017
ORANGETOWN—Rockland County continues to be a hub for major data center users. Most recently, Bloomberg and fifteenfortyseven Critical Systems Realty have developed major facilities in Rockland. In October, JP Morgan Chase became the latest to announce plans for a Rockland County location.
On Oct. 18th, JP Morgan Chase closed on the $7.5-million purchase of 60 acres of town-owned land at the Rockland Psychiatric Center for construction of the data center. The town estimates the project to be valued at $435 million. JP Morgan Chase did not comment or provide details on its planned data center project.
The town of Orangetown in an announcement stated that the project would involve an estimated $40 million in remediation costs, a new electrical substation, as well as the construction of the data center building itself. Off-site improvements include an upgrade to nearby sewers, water lines, a new traffic signal at the intersection of Convent Road and Third Avenue, and improved nearby access roads.
Town Supervisor Andy Stewart said the town began discussions with JP Morgan Chase’s real estate team about the site in September 2016. Knowing that the bank had other sites in mind and that the speed of the process was an important factor in the bank’s site selection process, he said the town set what he termed was an ambitious site planning and approval schedule, and by mid-June of this year granted final approval for the project from the Town Planning Board. However, the deal was contingent on obtaining various easements for vehicles and utilities from New York State and other approvals, which put off the sale of the property until October.
Steve Porath, executive director of the County of Rockland Industrial Development Agency, said the IDA authorized on April 20th sales tax exemptions of $35.5 million over a 20-year period in connection with JP Morgan Chase’s $423.5 million in capital investment.