EBay is moving forward with plans to expand its data operations throughout the state, pending the approval of tax abatements at an economic development meeting next week. In two separate applications with Nevada for tax breaks in Clark and Storey counties, the e-commerce giant plans to invest $412 million, a large portion going to the purchase of servers, and to hire 52 new employees.
EBay’s desire to expand its data operations presence in the state has been well-known for some time, but the details weren't previously available. Switch, the Las Vegas data company in the midst of its own expansion, confirmed this year that eBay would be the anchor tenant in Switch’s planned $1 billion facility near Reno. EBay already operates servers at Switch’s Las Vegas facility.
Having a well-known company like eBay, which plans to spend $230 million on its data operations near Reno, could be a stimulus for the region and encourage more investment.
Switch and NV Energy reached a deal on July 10 in which the power company will build a 100-megawatt solar array to feed green power to the data company.
“When you bring in a company that’s working their data component here, you’re bringing a lot of technological expertise to the region as well,” said Mike Kazmierski, CEO of the Economic Development Authority of Western Nevada, which is presenting eBay’s incentive application.
With top-tier data facilities, Switch often is cited as a magnet for big-name companies that require heavy data storage. In addition to operating on-site at Switch’s facility, the company's clients often establish a physical presence. When Machine Zone Inc., the company behind the top-grossing iPhone application “Game of War: Fire Age,” announced a $50 million investment in July, it also said it would start an operation in Las Vegas with 50 full-time employees.
Likewise, eBay already has a small office in Las Vegas. But the company could not confirm whether it planned to hire at that office should the expansion occur.
“Depending on the decision (on incentives) as well as other factors, we may increase our presence at the existing office location,” eBay spokesman Ryan Moore said in an email.
In its incentive application to the state, eBay said its total investment on the Clark County portion of the expansion would be $182 million.
It’s possible eBay could also hire an off-site staff near Switch’s Reno facility. “When you look at an operation of this size, I would not be surprised to see additional operations in the area outside of the data center,” Kazmierski said. “That would go for any large customer of Switch.”
The Governor’s Office of Economic Development is scheduled to review eBay’s two abatement applications at a board meeting Nov. 19. EBay is seeking three incentives — sales and use tax abatements, modified business tax abatements and personal property tax abatements — to expand operations.
According to the applications, eBay would receive about $13 million in abatements for its Clark County expansion and about $16 million for its investment in Storey County.
Steve Hill, executive director of GOED, said eBay’s investment reflected Nevada's strength in data resources and cloud technology.
“The fact that eBay has seen what we’ve done and continues to express their approval of that by putting their money where their mouth is reflects very well on the state,” Hill said.
Switch, he added, was integral to creating an edge for Nevada in data storage and connectivity.
“We’re really fortunate to have Switch here. Without them, none of this happens,” Hill said.