The New York Power Authority agreed on Tuesday to sell low-cost power to Yahoo Inc to build a data canter and to Sunworks Solar LLC to build a solar panel manufacturing plant.

Both projects will be in western New York. The data center will be in Lockport in Niagara County. The Buffalo News called it a $150 million project. The solar panel plant is a $200 million project, Sunworks said.

U.S. Senator Charles Schumer said the 125 full-time jobs across New York state will help foster high-tech jobs in upstate New York, hard-hit by the current recession.

The New York Power Authority, the state utility regulator, said it will provide 10 MW of hydropower to Yahoo for the first phase of the data center's construction. Construction is to start in September and the data center is to open in January 2011.

The NYPA agreed to allocate Sunworks with 5 megawatts for the construction of the solar plant project which is to bring about 300 construction and 175 full-time permanent jobs, according to NYPA.

NYPA's allocation of low-cost hydropower has attracted us to consider a sizable investment in the future of the Buffalo-Niagara Frontier region, said Sunworks CEO Brian Robertson.

Sunworks said once the plant is up and running, as many as 1,300 jobs will be created around the state, including necessary supply chain support and maintenance on solar panels it makes.

Sunworks is based in San Francisco. Yahoo is based in Santa Clara, California.

(Reporting by Bernie Woodall; Editing by Christian Wiessner)