1. ECONorthwest Economic Impact Prineville’s data center ECONOMIC DEVELOPMENT FOR CENTRAL OREGON

2. Report prepared by ECONorthwest – 30-year-old Company – Economic development, land-use, natural resources, business, finance – Measure economic and fiscal impacts FACEBOOK: ECONOMIC IMPACT FACTS

3. Overall Impacts in Oregon – $210.4 million total capital costs – $142.7 million economic activity – $9.2 million personal income – 1,081 jobs FACEBOOK: ECONOMIC IMPACT FACTS

4. Expenditure Approach – Capital, payroll, goods & services – Measured in two phases: Capital expenditure (construction) Operations & Maintenance (yearly activity) FACEBOOK: ECONOMIC IMPACT FACTS

5. Impacts by type: – Direct (payroll, output, non-labor) – Indirect (purchases of goods & services) – Induced (further consumption & investment) FACEBOOK: ECONOMIC IMPACT FACTS

6. Capital spending in Prineville – $15.2 million economic activity – $6.0 million personal income – 148 local jobs – $1.2 million in sales on lodging, food, retail FACEBOOK: ECONOMIC IMPACT FACTS

7. Operations spending in Prineville – $21.3 million in economic activity – $5.5 million personal income – 111 jobs for local workers FACEBOOK: ECONOMIC IMPACT FACTS

8. Operations spending in Prineville – 55 full-time jobs currently – Avg. wage = $59,400 (wages + benefits) – 35% above avg. wages across region FACEBOOK: ECONOMIC IMPACT FACTS

9. Operations Economic Multiplier – Output = 1.3 – Personal income = 1.7 – Jobs = 2.0 – $1 million payroll = $700,000 more income – 10 jobs created by FB = 10 jobs elsewhere FACEBOOK: ECONOMIC IMPACT FACTS

10. FB spending has potent economic effect 1.Above average wages support more consumption-related spending 2.Developed strong supply-chain in Oregon 3.Supply-chain partners support above avg. wages of ($64,200) that support additional consumption-related spending FACEBOOK: ECONOMIC IMPACT FACTS

11. What if facebook didn’t exist? “The economic contributions of facebook are enhanced by the nature of its operations in Oregon and the fact that almost all of the revenues used to finance its operations are from non-Oregon sources. In this regard, all of the spending by facebook and the associated economic and fiscal impacts are considered net new impacts for the state.” FACEBOOK: ECONOMIC IMPACT FACTS

12. What are the trade-offs? – Do data centers use too many resources? Water, sewer, power – Is the 15-year tax incentive worth it? FACEBOOK: ECONOMIC IMPACT FACTS

13. Facebook water usage – What’s the comparison to other businesses? Woodgrain: 172.91 gpm Contact:68.85 gpm NW Laundry:62.08 gpm Facebook:28.00 gpm FACEBOOK: ECONOMIC IMPACT FACTS

14. Long term plan for water? – Water capacity exists, but infrastructure improvements needed. Future data centers to pay for any and all upgrades – Facebook funded water study – Feasibility of utilizing city’s wastewater FACEBOOK: ECONOMIC IMPACT FACTS

15. Data center power usage – Varies based on size and scope – Average usage 28 MW per 330,000sf – Data centers pay 100% for power FACEBOOK: ECONOMIC IMPACT FACTS

16. Is there enough power capacity? – 720 MW currently in regional system – 796 MW by July 2013 – 1077 by mid 2014 – 1,477 in 4-5 years FACEBOOK: ECONOMIC IMPACT FACTS

17. Long-term enterprise zone tax incentive – Offers 15-year tax incentive for rural, economically distressed communities – Must create and maintain 35 jobs – Pay 150% above average wages – Minimum investment level: $8.8 million FACEBOOK: ECONOMIC IMPACT FACTS

18. Long-term enterprise zone tax incentive – Facebook saves about$1.5 million per year – However, community is getting: $21.3 million in economic activity $6.0 million in personal income 111 jobs FACEBOOK: ECONOMIC IMPACT FACTS

19. Long-term enterprise zone tax incentive – Helps with job recruitment efforts – Creates competitive business climate – Approved by city/county in a public hearing FACEBOOK: ECONOMIC IMPACT FACTS