It appears that Google will be opening a facility in The Dalles, Oregon according to an article in The Business Journal (Portland, OR). Google will pay $1.87 million for 30 acres of industrial land.
Both parties have signed off on a sales agreement. But the Chronicle reported it's contingent on conditions in the agreement being met -- such as tax incentives and power supply.
Google confirmed that the deal was "in the works" but "declined to provide more details about why The Dalles was chosen or what type of work would be done at the site."
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