Yahoo on Tuesday opened a new data center in New York, which it said is one of the world's most energy-efficient and cost-effective data centers in the world.

The Lockport facility, located about 25 miles from Niagara Falls, is the first center to use Yahoo's green data center design, known as the Yahoo Computing Coop (YCC). It was funded in part by a $9.9 million grant from the Department of Energy.

The area's climate will help with cooling efforts, but Yahoo will also take advantage of winds and hydro-power to keep the 120-by-60 foot server buildings cool, it said. Those server buildings have been nicknamed the "Yahoo Chicken Coop" because they resemble their long, narrow design. This helps encourage natural air flow, however, which Yahoo said means that less than 1 percent of the building's total energy consumption will be for cooling purposes.

Overall, the Lockport data center will consume up to 40 percent less energy and at least 95 percent less water than traditional data centers, Yahoo said.

Hydro-power will be provided by the NYPA utility.

Yahoo said the construction of the facility created 500 jobs in the region, and it will employ 125 people to work in the completed data center. The center will power a number of Yahoo products, including Yahoo Mail, Messenger, Flickr, News, Sports, Finance, and Answers.

Yahoo CEO Carol Bartz hosted a ribbon-cutting ceremony today, and was joined by Sen. Charles Schumer, Gov. David Paterson, Rep. Chrisopther Lee, as well as local politicians and power officials.

"We're thrilled to unveil our world-class data center in Lockport and take an active role in the community," Bartz said in a statement. "Yahoo is serious about sustainability and is leading efforts to address climate change. That's why we believe in creating highly efficient data centers that minimize the impact on the environment."

"At a time of sky-high unemployment, 125 new, high-tech, high-paying jobs is just what the doctor ordered," said Sen. Schumer.