On Friday, the firm YZY Capital Holdings, LLC, announced it has entered into a binding agreement with the Muskogee City-County Port Authority to build two data centers in Muskogee county. The investment worth $100 million will be used to construct and operate two 50MW data centers, one in Muskogee and another other in Oktaha.
As part of the agreement, YZY has agreed to purchase 136.5 acres of land owned by the Muskogee Port Authority. Muskogee Port Director Kimbra Scott says she is “very pleased to partner with YZY in the development of these data centers. This announcement highlights the importance of the Port’s land acquisition efforts in helping to facilitate large capital investment projects such as this.”
In addition to securing lands suitable for development, YZY attributes their decision to locate in Muskogee county to the “supply of reliable, secure, and low-cost power, labor availability and business-friendly operating environment”, explains Qian Yuan, owner of YZY Capital Holdings.
“We’ve been very impressed with the Muskogee area and the community leadership”, says Yuan. “It’s extremely helpful when communities are well organized and can react quickly to meet our needs.”
The Oktaha facility is expected to be operational by end of Q1 2022 and will be the first to come online. The center will be built on 15 acres located adjacent to OG&E’s newest substation, which will be completed in Q1 2022.
In Muskogee, the data center will be located within the Port of Muskogee’s John T. Griffin Industrial Park and situated over 126.5 acres of land, adjacent to OG&E’s 345kV transmission line. Proximity to the transmission line was important as OG&E plans to construct a new on-site substation to serve the project, which is expected to be completed by end of Q2 2023. As part of the development agreement, Yuan says he expects the Muskogee facility to be online “by Q4 2024”.
Scott credited the Port’s partnership with OG&E as one of the primary considerations leading to YZY’s announcement. “Economic Development Manager for OG&E, Richard Cornelison, provided introduction to YZY and was instrumental in providing guidance to our staff and the company throughout the due diligence process. We are very appreciative of OG&E’s efforts to be a strategic partner in the growth of our community.”
These new operations will help the local economy by bringing “high-paying jobs to the area and providing local employment opportunities,” says Yuan.
YZY officials said employees would earn an average salary of about $60,000 per year in positions that include facilities support such as heating, ventilating and air conditioning maintenance; systems administration, including electrical engineers; and data center technicians. These facilities would also retain contract personnel for additional support services such as security and grounds keeping. Once fully operational, each facility is expected to employ about 20 people.
Ken Doke, County Commissioner for District 1 which includes Oktaha explains, “People really have no idea how much time and effort goes into recruiting new companies. When it all comes together, there is nothing more rewarding than inking deals that bring in quality jobs; bolsters the local economy; and provides more revenue for our local taxing entities.”
The $100 million investment is expected to generate approximately $1 million each year in new property tax revenues. These revenues are shared by Muskogee County, Muskogee County EMS, Muskogee County Health Department, Muskogee Public Library, Indian Capital Technology Center and the public school district in which the property is located. The local school districts receive the largest share, approximately 75%.
“This major investment in the Muskogee and Oktaha communities will be a game changer for Hilldale and Oktaha Public Schools”, touts Rep. Avery Frix. “I’m excited for the future of Muskogee county with this transformational investment. My hats off to the Port of Muskogee for securing this historic investment.”
Keith Hyslop, District 2 County Commissioner which includes John T. Griffin Industrial Park, touted “This announcement by YZY is evidence of the successful partnership between the Port, the City and the County to bring job opportunities to our residents and to provide better services through increased tax revenues.
“We are ecstatic with excitement to announce the arrival of 40 new technology jobs to the Muskogee market”, said Mayor Marlon Coleman. “These jobs help us in our efforts to define Muskogee as a potential hub for high-tech, living wage jobs. Our goal has always been to make Muskogee a place where we can live, work and play, and being selected by YZY as a job site puts us closer to making that goal a reality for our community. We are looking forward to working with them in developing the necessary infrastructure over the next several months to help make them successful as they grow Muskogee with their presence.”
Muskogee City Manager Mike Miller also commented, “Today’s announcement reflects Muskogee’s continuing growth as a jobs and technology hub for our region. We look at this as a great next step as we continue to bring additional high-tech jobs and investment to Muskogee.”
ABOUT YZY
YZY Group is an enterprise group involved in integrating R&D, production, sales, and investment. The industries involved include foreign trade, automotive marketing and after-sales services, financial services, biopharmaceuticals and medical technology, R&D, production and sales, industrial real estate, logistics and warehousing services. YZY Capital Holdings is a new component of YZY Group. YZY Holdings is an investment fund with a focus on the North American market.
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