IBM QUANTUM FACILITY PROJECT

2455 South Road, Town of Poughkeepsie; Project Value: $2.51 billion

IBM, headquartered in Armonk, is seeking approval from the Town of Poughkeepsie for its Quantum Facility project, which is among the largest private investment projects in the history of Dutchess County.

In addition to its local approvals, IBM filed an application with the Dutchess County Industrial Development Agency on June 25 seeking $104,181,888 in sales tax exemptions for its advanced manufacturing project. The project involves renovations to the existing 44,000 square foot building and approximately 300,000 square feet of new construction. The facility will support IBM’s development, integration, testing and delivery of fault tolerant quantum computing systems.

Robin D. Mack, executive director of the Dutchess County IDA, said that, at press time, IBM was negotiating with the Town of Poughkeepsie regarding its request for a 30-year PILOT agreement. Mack said the $2.5 billion project is the largest ever considered by the Dutchess County IDA and that the requested sales tax exemption of more than $104 million is also the largest in the agency’s history.

Todd Diorio, president of the Hudson Valley Building & Construction Trades Council, said the project will be performed primarily by union trades, although there is no Project Labor Agreement. If incentives are approved by the Dutchess County IDA, the project will be required to employ 80% local labor.

IBM currently employs approximately 2,300 people at the site, including full-time employees, part-time employees and interns, Mack noted. IBM stated in documents filed with the IDA that the project would create 250 construction jobs. In addition to retaining existing jobs at the site, IBM projects the facility will create approximately 200 new full-time equivalent positions.

According to an analysis of the project recently released by the IDA, construction costs are expected to total approximately $900 million.

Some preliminary work at the site has begun. CIC member Shawn’s Lawns Inc. of Stamford, CT, has secured the site work, concrete foundation and earthwork package for the project.

Before groundbreaking can begin, the project requires municipal approvals, finalization of the PILOT agreement and approval of incentives by the Dutchess County IDA. The next meeting of the Dutchess County IDA is scheduled for Aug. 26, when the board could approve the project for further review. A public hearing on the proposed incentives will not be scheduled until IBM and the Town of Poughkeepsie reach a final agreement on the PILOT. That would be followed by final consideration of the requested incentives.

IBM stated in its application that it hoped to begin construction in September 2026. Mack said the project is unlikely to meet that timeline.

WALMART WAREHOUSE/DISTRIBUTION FACILITY

Route 17K and Stone School House Road, Town of Wallkill; Project Value: $1.8 billion (industry estimate)

While firm development costs have not yet been filed with the Town of Wallkill, sources in the development community tell CONSTRUCTION NEWS that private investment in the proposed warehouse/distribution facility could approach $1.8 billion.

As proposed, the facility would total 1.5 million square feet. The project also calls for a gated parking area with an emergency access connection and includes 1,215 employee parking spaces and 1,050 truck parking spaces. The facility would be built on a 9.3-acre parcel owned by Walmart, which also owns an adjoining 127-acre parcel.

Other components of the project include a generator and battery storage system to support the facility’s automation, a wastewater treatment plant and water storage tanks for fire protection.

According to documents filed with the Town of Wallkill in late July, Phase One includes construction of the primary facility and associated infrastructure. Phase Two includes construction of a future truck maintenance garage. Walmart anticipates beginning Phase One construction in September 2027 and Phase Two by December 2031.

Representatives of Walmart were scheduled to appear before the Town of Wallkill Planning Board on Aug. 5. At press time, Walmart had not filed an application for incentives with either the Town of Wallkill Industrial Development Agency or the Orange County Industrial Development Agency.

AMAZON FULFILLMENT CENTER

22 McBride Road, Slate Hill NY; Project Value: $607 million

The project being developed by Scannell Properties for Amazon calls for construction of a 3.2 million square foot fulfillment center. The development has been supported by the Hudson Valley building trades and is expected to be constructed predominantly by union labor. However, the proposal has sparked significant litigation involving both its municipal approvals and incentives granted by the Orange County Industrial Development Agency.

At press time, while the developer had won a court ruling upholding the required height variance and site plan approval, a judge recently upheld the Orange County IDA monitor’s November 2025 veto of approximately $80 million in incentives previously approved by the Orange County IDA Board.

At press time, Scannell Properties and Amazon had not announced whether they would proceed with the project or submit a new incentives application to the Orange County Industrial Development Agency.