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Yahoo to open Nebraska site

Yahoo to build new data center and open a customer care center in Nebraska. Deal comes on the heels of Yahoo's 10 percent layoffs.

Update at 1:36 p.m. PDT: Details added.

Despite announcing 10 percent layoffs and a weak financial outlook earlier this week, Yahoo plans to build a new data center and open a customer care center in Nebraska, according to an announcement Friday by Nebraska's governor.

The project will entail building a 150,000 square-foot data center in La Vista, a suburb of Omaha. And the Internet search pioneer will open a customer care center in Omaha.

Under the state's Nebraska Advantage Tier 4 business incentives package, Yahoo will apply for various business incentives and tax breaks. And, in return, Yahoo would need to invest at least $100 million in capital and create 100 new jobs.

"These two projects present an extraordinary opportunity for Nebraska. It leaves no doubt that Nebraska can successfully compete for technology jobs," Gov. Dave Heineman said in a statement.

Yahoo began searching for a data center site in the Midwest in January, and Nebraska officials said the state's Nebraska Advantage program played a key role in wooing the Internet company.

Nebraska, while far away from Silicon Valley, has attracted some technology players, such as telecom companies and eBay's PayPal, to the eastern region of the state.