Facebook subsidiary applies for $6.6bn to expand New Mexico data centre
Greater Kudu, LLC, a subsidiary of Facebook (NASDAQ: FB) has filed an application with Los Lunas city officials seeking $6.6 billion in additional funding to expand its New Mexico data centre expansion.
Facebook is thought to be the company behind Greater Kudu LLC.
The Los Lunas Village Council approved the intent to move forward with the process last month, and it was anticipated that the project would consist of the construction and equipping of two data centre buildings that would cost around $800 million.
If fully built out, the campus could house a total of six data centre buildings, according to the filing application.
Greater Kudu, LLC also anticipated that the project would support hundreds of construction jobs during the two-year buildout and 30 direct full-time employees following completion of the first two buildings of the project.
The industrial revenue bonds would provide real property, personal property, gross receipts and compensating tax exemptions to defray part or all of the costs of the project, which may serve to encourage economic development in the area, according to the company’s application.
In return for the tax exemptions, the Facebook subsidiary would agree to an annual payment in lieu of taxes for each data centre building.
The filing also revealed that the resolution indicates the non-binding intent of the Los Lunas Village to proceed with the issuance of industrial revenue bonds for the financing of the project.
Los Lunas Mayor Charles Griego said that economic development will play a key factor in considering issuing the company bonds to expand the centre.
The bonds would be issued pursuant to the terms of an ordinance expected to be considered by the Village Council on or about March 11, 2021.