Microsoft Corporation (NASDAQ:MSFT) Commits To $200 Million Expansion In Cheyenne

Microsoft Corporation (NASDAQ:MSFT) has announced that it will commit $200 million to the expansion of a data center in Cheyenne. The funds will be used to upgrade the cloud computing capacities and was made public by the Governor of Wyoming, Matt Mead. The expansion will help the economy of the region by adding 25 jobs, bringing the current number of employees at the facility to 50. No time line was given for the project but work is expected to start as early as this summer.

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Revamp Project

Microsoft Corporation (NASDAQ:MSFT) began developing the data center in the early months of 2012. Once this phase is complete it will bring the total of Microsoft’s investment in the facility to $750 million. The jobs are important to diversifying the state’s economy by bringing more tech opportunity to the area. The economy will get a boost from the influx of people involved with the expansion and will be a boost for local businesses including hotels and restaurants.

Wyoming’s Share

The state will also contribute $5 million to help with the infrastructure build of the facilities expansion. Construction crews will add another 200 – 600 jobs also to the states balance sheets. Cloud computing is in demand and the technology is evolving quickly. The plants expansion is critical to Microsoft’s status in the industry. The state has other high-tech facilities run by various organizations like NASA. NASA’s facility is home to world’s fastest climate modeling platform that is dedicated to earth science. The economic boost for the state coupled with Microsoft’s advancement of the facilities tech capabilities makes this a good proposition for both sides. The state has cool weather and also cheaper electrical prices making the area prime for these types of facilities.

Technicals

The stock has taken a beating technically and needs to take out the $25 level before any real repairs are done. Once it takes out that resistance a healthy dose of base building is in order. The stock is a hold until then.

Abbott Michael

Abbott Michael

Michael joined US Markets Daily in 2009 and is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments.