Apple promises $2 billion command center in Mesa

• The east Mesa center is expected create 150 full-time jobs for Apple
• It could generate from 300 to 500 construction and trade jobs when the facility at Signal Butte Road is built out
• The revived facility will cover 1.3 million square feet and operate using solar power%2C the Governor%27s Office said

Apple Inc. will establish a command center for its global data networks in Mesa, promising to invest $2 billion over 10 years at a facility where grand visions have fizzled twice before.

The east Mesa center is expected to create 150 full-time Apple jobs and could generate up to 500 construction and trade jobs, while the facility at Signal Butte and Elliot roads is configured for its latest role. As part of the deal, Apple is expected to build and finance solar projects that provide enough energy to power more than 14,000 Arizona homes.

Tempe-based First Solar Inc. built the plant and planned to employ about 600 workers there but never fully occupied it. Next came GT Advanced Technologies Inc., a sapphire-glass supplier to Apple. That company filed for bankruptcy last year and has been moving out of the 1.3 million-square-foot building, which Apple owns.

The project, announced Monday by Gov. Doug Ducey, will bring significantly fewer permanent jobs than the number touted by planners of the ill-fated glass-manufacturing plant. Still, the latest plans directly involve Apple and could serve as an anchor for a tech corridor Mesa officials are trying to assemble.

Ducey hailed Apple's move as confirmation of the state's business-friendly environment and the product of a more nimble government that "moves at the speed of business."

"We think the fact that the most successful company in the history of America has chosen the state of Arizona for its largest investment is an exclamation point on the direction we're headed," Ducey said. "We're excited about it, and there's more to come."

As is its practice, Apple had no officials on hand for the announcement. A Mesa spokesman described the command center as akin to a warehouse for Apple's digital services, like iTunes digital music and iCloud data storage.

Ducey offered little detail on what incentives Apple could receive as part of the deal, but he did say the $10 million previously offered by the Arizona Commerce Authority was not part of the latest deal. Ducey indicated Apple could seek incentives such as job-training tax credits, and the plant site is designated as part of a foreign-trade zone, which carries lower taxes.

"We're building on the work of what was done before us," Ducey told reporters. "I think what you'll see with this deal is you will see a better investment, a bigger commitment with a longer time frame.

"We're working within the framework of the existing law, and Apple is welcome to participate in that," he continued. "Whether it's Apple or a newcomer that's just starting, or whether it's a company like the story last week with Uber and Lyft that's got unnecessary regulation on them, we are going to clear the pathway to be the most entrepreneurial, most innovative state in the country."

Mesa Mayor John Giles called the announcement great news for the city, which will get a bigger Apple corporate presence.

"The iCloud will be hovering right over Mesa, Arizona," Giles said. "I couldn't imagine a better ending to this story."

Giles said he likes the new deal better than the previous one, involving GT Advanced Technologies, because it involves Apple directly, not a subcontractor. The jobs will be higher-paying, and the long-term outlook is more stable, he said.

Apple is valued at about $700 billion, easily the most among U.S. publicly traded companies.

Among the details that remained unclear Monday was what Apple intends to do to meet its apparent promise of a 70-megawatt clean-energy supply. Salt River Project, the utility serving that area, has not announced any new solar-power plants for Apple. Some companies buy credits from remote solar- or wind-powered plants that are exchanged with other fossil-fuel-burning utilities that actually power the companies' needs.

"We are working with them to identify sustainable resources that meet their (electricity) load requirements," SRP spokesman Scott Harelson said Monday. "That could include new projects."

Mesa is not providing an incentive to Apple but had previously expedited infrastructure projects to prepare for the original First Solar development, Mesa spokesman Steve Wright said.

Ducey made the announcement flanked by the Republican leadership in the House and Senate and with Giles at his side. Conspicuously absent and unmentioned was Sen. Bob Worsley, R-Mesa, who worked on efforts in 2013 to bring Apple to Mesa and last year sponsored a bill that would have given Apple a $5 million tax credit if it installed $300 million worth of renewable energy.

Sen. Steve Farley, D-Tucson, welcomed Apple but said he worries about the lack of specifics on how the state landed the deal.

"Economic development isn't just a matter of a low-tax climate. Economic development means you have people who are trained properly to actually be able to do the jobs that you are encouraging companies to come here and take advantage of," Farley said. "We deserve to have a well-balanced economic-development climate, and that means funding our schools, fixing our roads and balancing our budget. It doesn't mean giving away more tax incentives."

Apart from the particulars of the deal, Apple's renewed interest in Arizona could signal the new governor has assured the company he would not support legislation like last year's controversial Senate Bill 1062. Ducey fielded few questions before leaving his news conference. His aides offered no details.

Reach reporter Mary Jo Pitzl at maryjo.pitzl@arizonarepublic.com or @maryjpitzl.