Is Central Oregon About to Lure Another Golden Goose to Its Hi-Tech Economic Farm Next Year?

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An apple a day may be just the health tonic needed to energize the stagnate local economy.  But this apple you can’t bake in a pie.  Rumors are flying that Steve Jobs’ beloved Apple, the world’s biggest technology corporation, is eyeing Prineville as a potential home for a colossal cloud computing and iTunes data fortress.

Officials at Apple are close to deciding on whether or not the company will set down serious roots in our beautiful backyard, just down the block from the massive Facebook server farm that opened earlier this year in April. 

Server farms are perfectly suited to the state due to its relatively inexpensive power grid, enviable weather, ample space and attractive tax-free implications.  Erecting them in these specific rural “enterprise zones” give fat breaks to computers and other technology equipment from the harsh property taxes other companies shell out.  Depending on the size and scope of Apple’s construction desires, that tax-free exemption can be worth tens of millions of dollars.

Apple’s project goes by the Western-themed code name “Maverick,” and has an expiring option to purchase a 160-acre parcel of land from Crook County.  Planning officials expect a decision by the first of the year whether the computer giant wishes to extend that option or packs up and looks elsewhere.  According to Bill Zelenka, Crook County’s planning director, “Maverick” has not asked for an option extension as the deadline approaches.

Last week, the Prineville City Council voted unanimously to annex Apple’s proposed 160-acres of Crook County land, enabling it to provide sewer and water services to the site.

Clandestine data centers use secret code names to keep their identities in the dark until a serious commitment has been signed in ink.   Competitive advantage and rampant media speculation can make it necessary to keep a cloak on things.   “Project Vitesse” was the name Facebook came up with for its planned Prineville data center.  Vitesse is the French word for “speed,” and happens to be the name of Facebook site operations director Tom Furlong’s boat.

Typically, Apple will not respond to any rumors or facts on its plans, but has had scouting teams touring the Facebook center this past summer and many notes and nods were apparently observed. 

The subject of inadequate power transmission in the Crook County area has been tossed around, according to sources close to Apple.  That would be a prime factor in the decision to construct a large data compound. 

In June 2013, one year ahead of schedule and at a cost of $26.5 million, The Bonneville Power Administration will complete a much-needed upgrade of its Ponderosa Substation feeding Crook County steady amps and volts. The project was brought on-line at the persistent urgings of Oregon’s congressional delegation and should add more sparkle to the Apple deal by greatly expanding the area’s capacity for beefed-up transmission.

Planning documents submitted to BPA show “Maverick” to be envisioned as a 31-megawatt data center, somewhat smaller than Google’s center in The Dalles.   That power usage is enough electricity to power over 22,000 homes! Typically, data centers are not huge boons for local employment and require minimal management, relying mostly on automation to operate its army of humming servers and computers.  However, the construction opportunities for local workers, contractors and sub-contractors does provide a refreshing, yet fleeting lift.  And with Crook County’s stratospheric 15.8 percent unemployment number, any relief, even temporary, is humbly welcome.

This year, fortune smiled on Apple’s power need as a pair of other monster data center projects, Rackspace’s “Cloud” and “Jasper” have either relocated their blueprints or postponed their plans altogether, freeing up more supply. 

Until “Maverick” settles its tax concerns with the state and commits to partnering with the region, city officials patiently wait and go about holiday plans, hopeful the new year’s moon rises in the shape of a sweet juicy Apple.

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Founded in 1994 by the late Pamela Hulse Andrews, Cascade Business News (CBN) became Central Oregon’s premier business publication. CascadeBusNews.com • CBN@CascadeBusNews.com

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