< PreviousWhen doling out taxpayer dollars under the Biden Administration’s Tech Hubs program, the U.S. Commerce Department is quick to refer to some of the numbers behind its granular vetting process. Of public-private coalitions that formed nationwide to pursue this sliver of federal funding under the CHIPS and Science Act, a mere received Tech Hub designations after an initial knock-out round that concluded in September of . Of those, just were awarded “Phase ” implementation funding — ranging from $ million to $ million — as announced to great fanfare in early July. On the day of that announcement, Commerce Secretary Gina Raimondo, the deeply invested overseer of the Tech Hubs project, made a beeline for Dragonfl y Energy, a lithium-ion battery manufacturer in Reno, Nevada. Yes, Raimondo chose Nevada to trumpet her nationwide initiative, which awarded the maximum $ million to the Nevada Tech Hub, a clean energy coalition led by the University of Nevada, Reno (UNR) and grounded in the state’s rich deposits of lithium and other strategic minerals and metals. “ e Nevada Tech Hub based in Reno will help make the region a global lithium leader,” Raimondo said, “by bringing together companies, startups, schools, and workforce development organizations — all while boosting economic development and opportunity in northern Nevada and creating new good-paying jobs.” Formerly considered of questionable value, lithium has emerged as a crucial cog in the clean energy transition, specifi cally as the essence of the lithium- ion batteries that fuel so many things electric. Operated by North Carolina- based Albemarle, Nevada’s Silver Peak mine is among but a very few active lithium producers in the country. It’s about three hours south of Tesla’s Gigafactory Nevada, which employs around , people east of Reno. More lithium mines are on the way. by GARY DAUGHTERS gary.daughters@siteselection.com Nevada S T A TE SPO TLIGHT 210 SEPTEMBER 2024 S I T E S EL E C T I O N The Start of Something Big? by GARY DAUGHTERS gary.daughters@siteselection.com The Start of Something Big? Federal Tech Hub status stokes Nevada’s clean energy dreams. Commerce Secretary Gina Raimondo in Nevada. Image courtesy of Dragonfl y EnergyDanny Newman, a court reporter nearing semi- retirement in Athens, Georgia, can reliably certify that he attended 130 Grateful Dead concerts at venues across the country. And after two recent trips to Las Vegas, 44 shows by successor band Dead & Company. The six Dead shows he saw at the Sphere, the new Vegas landmark and otherworldly 4D entertainment space, were unlike any that Newman has witnessed during his decades of concert-going. “What I was not expecting,” he recalls, “was how it was virtual reality without goggles. That it could transform you to the desert, to the galaxies, to the ocean, to ancient Egypt. And I’m saying to myself,” he remembers, “‘My gosh, you’re telling me this is not real?’” All to the swirl of the music. Built at a cost of $2.3 billion — more than Allegiant Stadium, home of the NFL’s Las Vegas Raiders — the Sphere boasts the world’s largest LED screen, spanning 160,000 sq. ft. with 16K resolution. When illuminated, the building’s domed exterior is said to be visible from, yes, space. U2 sold some 650,000 tickets and grossed more than $200 million during a 40-show run that christened the Sphere beginning last September and accounted for untold room bookings, meals and assorted spending sprees. A sold out, four-show series by the jam band Phish preceded Dead & Company’s 30-concert residency, which moved nearly a half-million tickets from late May into August at an average price of around $400. Max attendance at the Sphere straddles 18,000. The Eagles launch a series of 16 shows beginning September 20. S I T E S E L E C T I O N SEPTEMBER 2024 211 “ is is the new oil,” said Dragonfl y CEO Denis Phares, speaking not strictly of the silvery-white metal found abundance in Nevada but of the entire “lithium loop,” from extraction to processing, manufacturing and recycling. “ e opportunity to do that here in Nevada is unparalleled,” Phares said at the Tech Hub event. Noting Nevada’s lithium wealth and his company’s -year history there, the UNR grad declared that Nevada “turned out to be a really great place to start a battery company,” joking that “I was happy when Tesla saw what I did and copied me and moved here.” Right Place, Right Time Dragonfl y and Tesla are among the partners that comprise the Nevada Tech Hub, joined by institutions and companies that include UNR, the Governor’s Offi ce of Economic Development (GOED), Panasonic Energy of North America, Agilent Technologies, recycler Redwood Materials and lithium miners ioneer and Lithium Americas. Fred Steinmann, who spearheads the Tech Hub as director of UNR’s University Center of Economic Development, says benefi ts of the Commerce Department’s endorsement go well beyond the monetary award associated with it. “ e designation of a Tech Hub is very much a signal to the private sector, not just domestically in the United States, but also in partner nations, that ‘here we have a geographic area that’s been identifi ed by the federal government as a unique cluster.’ Since our designation,” Steinmann tells Site Selection, “we have had inquiries and meetings from representatives of Quebec and Ontario. We’ve had inquiries from representatives from the Republic of South Korea, from Abu Dhabi and other nations that are interested in this critical element space.” Indeed, through its seeding of regional Tech Hubs, the Biden The Sphere hosts the Dead. Image courtesy of Sphere Entertainment IN THE STRANGEST OF PLACESWhen it comes time for business, it’s time to consider Henderson, Nevada. With more than 336,000 residents, the second- largest city in Nevada is home to award-winning parks and recreation opportunities, major league sports teams, thriving outdoor spaces and, of course, a robust business landscape. Last year, City leadership and the City Council laid out our vision for the future through our Strategic Plan. One of our five dedicated strategic priorities was Economic Vitality, boldly outlining how crucial our business partners are to our City’s success. Our vision — to be America’s premier community — cannot happen without dedicated businesses ready to join our audacious mission. A READY WORKFORCE Businesses need a talented and trained workforce, which we have here in Henderson. More than 94% of our residents have at least a high school diploma and are ready to take on job- specific training catered to any industry. Last year, the City partnered with the College of Southern Nevada to launch the Center of Excellence — an advanced manufacturing training facility in our City. Quality Education is one of our strategic priorities, and we ensure that our students are prepared from preschool through high school and beyond with Nevada State University, CSN, and specialized workforce training in our backyard. No matter what type of industry you occupy, you will have a partner with the City of Henderson. CONVENIENT LOCATION, LOW COSTS Henderson is conveniently located in the heart of Southern Nevada, uniquely situated within a five-hour drive of more than 27 million people and 1 million businesses. Simple accessibility to the Ports of Los Angeles, Long Beach, and San Diego makes Henderson not only a place to do business in the robust Southern Nevada market of nearly 3 million people but also a gateway to the rest of the world. Low costs help Henderson foster our business- friendly climate. Nevada is the fifth-lowest- cost state for business in the nation, helped by charging zero taxes on personal and corporate income, 30% lower property taxes than the rest of the country, and more. Henderson is proud to have recently been named the fourth-best business climate among mid-sized cities in the United States, ahead of cities such as Madison, Wisconsin; Cincinnati, Ohio; and Lubbock, Texas. Once you are here, our premier quality of life will ensure you always want to stay. There is something for everyone, and our status as one of the safest cities in America means Henderson is the place to be for all your professional and personal needs for years to come. QUALITY RESOURCES The City of Henderson was recently named an Accredited Economic Development Organization — the only municipality in Southern Nevada to earn such a distinction. This shows that Henderson is world-class and ready to assist with anything and everything you need to succeed. We have more than 27 million square feet of available space to offer operational settings ideal for every need, including prime office space in every classification and an extensive stock of industrial sites, business parks, spec buildings, and land. That includes: • 20 million square foot industrial market with a 3.4% vacancy rate and an average asking rent of $0.77 per square foot. • 7.5 million square foot office market with a 17% vacancy rate and an average asking rent of $2.21 per square foot. • 850 acres of recently annexed land in Eldorado Valley, the future home of an industrial park. Henderson is the best place in the country to relocate or expand your business. Don’t take our word for it – when the NFL’s Las Vegas Raiders and WNBA’s Las Vegas Aces needed a Southern Nevada home for their headquarters and training facilities, they chose the growing area of West Henderson to plant their roots. Haas Automation, the world leader in CNC Manufacturing, will soon call Henderson home for its world-class manufacturing facility, and Barclays, a multinational banking leader, continues to invest in a significant back-office operation in Henderson. Discover how Henderson can support your next bold move. Visit HendersonNow.com. BOLD INVESTMENTS LEAD TO ECONOMIC VITALITY IN HENDERSON A D V E RTI SE M E NT214 SEPTEMBER 2024 S I T E S EL E C T I O N Administration hopes to help propel them to global prominence within their distinct categories, a goal that aligns with Nevada’s efforts to diversify its economy beyond its historic reliance on casino-driven hospitality. The Great Recession of 2008 exposed cracks in that eggs-in-one-basket economic direction. COVID-19 and how Vegas again ground to a halt suggested to state leaders that 2008 might not have been a one-off. “The clean energy space has been a huge, huge boon to us,” says Bob Potts, GOED’s deputy director. Potts has been involved in strategy sessions going back more than a decade. “We are one of the largest sources of precious metals going back 150 years,” he says. “That mining infrastructure is already in place. So, on the one end you have all of these extractive opportunities. And now with Tesla and others on the demand side of things, it creates a huge capacity for us to backfill in the middle.” Founded in Carson City in 2017 by Tesla co-founder J.B. Straubel, Redwood Materials has emerged as a key player within that “lithium loop.” The company pulls critical minerals from end-of-life lithium-ion batteries and funnels them into anode and cathode components essential to the kind of next-generation batteries being made in Nevada. Redwood is creating a system through which battery-grade metals are continuously recycled and reused — reducing the need for new mining and thus supporting sustainability. Its roster of partners includes Toyota, Panasonic, Ford and Volvo. “All of a sudden,” says Potts, “you have all this stuff converging into the whole energy storage space, all of it hugely complementary.” He says it goes back to the vision of then-Gov. Brian Sandoval, now president of UNR and one of the Tech Hub’s top supporters. Sandoval helped pull stricken Nevada from the Great Recession’s greatest depths and saw clean energy as Nevada’s new thing. “I’d like to say we were the smartest guys in the room back then,” says Potts, “but a lot of it has been just being in the right place at the right time.” Continued Support Is Crucial Federal support for Nevada’s clean energy project doesn’t stop at the Tech Hubs award. In March, the Department of Energy announced a $2.26 billion conditional loan under the Advanced Technology Vehicles Manufacturing Act (ATVM) to support construction of a battery-quality lithium carbonate processing plant at Thacker Pass, along Nevada’s northern border. Further backed by a $650 million equity investment from General Motors, Vancouver-based Lithium Americas is spearheading the project, which includes construction of an open-pit lithium mine launched in June 2023. Lithium Americas says Thacker Pass hosts the largest known lithium resource in North America. “The United States has an incredible opportunity to lead the next chapter of global electrification in a way that both strengthens our battery supply chains and ensures that the economic benefits are directed toward American workers, companies and communities,” said Jonathan Evans, Lithium Americas’ president and CEO. “The ATVM Loan is a significant milestone for Thacker Pass, which will help meet the growing domestic need for lithium chemicals and strengthen our nation’s security.” Lithium production at Thacker Pass is expected to reach full capacity by 2028. The project aims to produce enough lithium carbonate to support the production of batteries for up to 800,000 electric vehicles annually. It is expected to create 1,800 jobs during construction and 360 jobs in operations. Even amid such demonstrable momentum, UNR’s Steinmann, among others, acknowledges that America’s clean energy aims face significant headwinds. He points to the Tesla layoffs announced in May and the worldwide decline in lithium prices. He believes there’s a clear culprit. “China,” he says, “is flooding the market with batteries and essentially trying to kill the industry before we’ve had a chance to stand it up. It’s very much like OPEC in the ’70s, where a small band of bad actors can make life tough for everyone else. “But,” Steinmann notes, “the United States is now a net exporter of oil, and the Tech Hubs and the CHIPS and Science Act reflect that learning experience. It’s where you work to break that monopolistic pressure so that private-sector firms like Tesla and Panasonic and Dragonfly can be successful in a truly competitive market.” Tesla’s Gigafactory east of Reno. Image courtesy of TeslaLas Vegas is the fastest growing professional sports market in the U.S. In less than a decade, the city has become home to four major league sports teams, multiple minor league teams, and is home to UFC headquarters. And sports technology companies are taking note. Few sports exist today without the support of specialized technology. Wearables and fitness trackers are widely adopted form of sports tech, although most Americans are also familiar with video instant replay systems, smart stadiums, interactive equipment, and real time digital signage. And these investments continue to skyrocket. The global sports technology market was worth around $15.9 billion in 2022, and is now expected to reach $79.2 billion by 2032, creating a colossal opportunity for businesses to grow in sports tech alongside Southern Nevada’s growing sports economy. The Vegas Advantage In Las Vegas, sports tech companies have access to 13 professional sports leagues, plus countless national and international sporting events, creating endless opportunities to partner on research, testing, and promotion of products and services. Additionally, the city is a popular destination for elite athletes to train in their off-season, creating year-round opportunities for collaboration. The city is also home to more than a dozen large event venues that play host to the nation’s and world’s biggest sporting events, including F1 and Super Bowl. Las Vegas’ 17 sports facilities and arenas boast a combined capacity of 285,000 seats. Eight additional facilities are in the works, including a proposed major league baseball stadium, which would add more than 120,000 new seats. And six of those venues have been recognized as top-grossing venues globally by Billboard 2023, including Allegiant Stadium and T-Mobile Arena, demonstrating the region’s ability to support this rapidly growing market. The region also has a strong higher education infrastructure, with the University of Nevada, Las Vegas laser focused on workforce development and sports innovation through the recently created Sports Innovation Institute. This summer, the Institute will host SEICon in Las Vegas, the nation’s first sports, entertainment, and innovation conference, attracting participants from around the world. In addition, the UFC Performance Institute is the world’s first mixed martial arts center for innovation, research, and training, and conveniently located next to UFC’s main headquarters. Thanks to the region’s historical gaming and hospitality prowess, Las Vegas already has a robust sports tech ecosystem in place, including hometown sports betting companies Caesars Sportsbook and BetMGM. DraftKings recently opened a Las Vegas office, and gaming platform Skillz recently moved its San Francisco headquarters to southwest Clark County. The data analytics and compliance side of the industry is also represented in the region, with Integrity Compliance 360, Sportradar and Stadium Technology Group providing services to professional sports organizations across the globe. For those sports tech companies with startup ambitions, Las Vegas’ growing entrepreneurial ecosystem is a perfect fit. In fact, Las Vegas was ranked the best city in the country for pre-IPO startups in 2023. Armed with all that information, the question for sports tech companies really is: Why wouldn’t you look at Las Vegas? FROM SIN CITY TO SPORTS CAPITAL: Las Vegas Emerges as the Next Big Sports Tech Market A D V E RTI SE M E NT216 SEPTEMBER 2024 S I T E S EL E C T I O N UPS T A TE NEW Y ORK Upstate New York’s burgeoning semiconductor sector is poised for a welcome jolt. by GARY DAUGHTERS gary.daughters@siteselection.com Demand for electricity, both commercial and residential, is surging nationwide, even as aging grids show signs of strain. at’s why Upstate Upgrade, a $ billion investment by the utility National Grid, is one of several potential game changers for Upstate New York and its surging semiconductor sector. e six-year project announced in March is to yield more than , miles of new transmission lines along with new and upgraded substations across Upstate counties. e investment, the utility says, is to include new technologies that will increase the grid’s performance and reliability — especially in the face of increasing threats posed by extreme weather — while enabling the delivery of a growing portfolio of renewable energies. “With the combination of increased demand to power everything from smart devices to heat pumps and everything in between, as with the amounts of renewable energy being produced, the transmission system needs an upgrade,” the fi rst in about a century, explains Jared Paventi, National Grid’s communications manager. “What we’re doing will make the grid smarter, stronger and cleaner.” Nicholas Bruno, vice president of business development for Mohawk Valley EDGE, a regional economic development organization based in Oneida County, is among those applauding National Grid for its big investment. “ e fi rst question on all the RFIs [Requests for Information] I’m getting nowadays is ‘How much power can you get me?’ ” Bruno tells Site Selection. “Power is the name of the game. So, anytime you’re investing in your power infrastructure, you’re helping to make what you have even better, and now industry is willing to take a look at you.” Behind the Numbers A team led by Paul DeCotis, senior partner for energy and utilities at the business consulting fi rm West Monroe, ran a third-party economic analysis POWER Is the Name of the Game A grid that’s “smarter, stronger, cleaner.” Photo courtesy of National Grid218 SEPTEMBER 2024 S I T E S EL E C T I O N that found that Upstate Upgrade could generate nearly $2 billion in economic output across the state, while creating up to 2,900 long-term jobs — “due to new businesses, expanded energy projects and electrification” — plus another 1,700 jobs during construction. “We actually believe our numbers are conservative,” DeCotis tells Site Selection, “but those numbers really do speak for themselves.” On a granular level, West Monroe projected economic benefits arising from metrics ranging from hotel and meal spending by workers during construction to downstream gains including increased property values and property tax collections. Of course, for residential customers and businesses alike, it’s always nice when the lights and heat don’t fail. Bigger picture, DeCotis believes the updated grid will prove attractive to heavy users like Micron, whose chip-making “Megafab” north of Syracuse — being built through a projected 20- year investment of $100 billion with estimated job creation of nearly 50,000 — is a venture the likes of which the region has never seen. “Micron could not locate here if we did not have the significant electricity transmission infrastructure upgrades,” DeCotis says, “because we would not be able to serve their load. It’s infrastructure projects like this that make that economic development opportunity available.” Bruno tells Site Selection that Upstate Upgrade bolsters the prospects of the Marcy Nanocenter, owned and marketed by EDGE and located on the campus of SUNY Polytechnic Institute in Utica. Its anchor tenant is Wolfspeed, the North Carolina-based semiconductor manufacturer that’s investing a billion dollars in what is being billed as the world’s first 200-mm silicon carbide fab. Among other partnerships, Wolfspeed has supplier agreements with companies that include General Motors and Lucid Motors to provide silicon carbide semiconductors for electric vehicles. With close to 130 acres still open to development, EDGE hopes to lure other semiconductor businesses to Marcy. Bruno believes Upstate Upgrade can only help. “Reliability is the big one here,” he says. “With the billions of dollars they are investing, the semiconductor industry cannot have downtime and does not have tolerance for brownouts, rolling or otherwise. If you have a blip in the system, for these companies you’re talking about millions of dollars of lost revenue. So, reliability is just a huge selling point.” Emergence of a Hub As with the Marcy Nanocenter, EDGE hopes to bring semiconductor manufacturing and supply “New York is taking another major leap toward building Chips Country in our state.” — Gov. Kathy Hochul Micron’s planned “Megafab” in Upstate New York Rendering courtesy of MicronNext >