Despite announcing job cuts of 10 per cent last week, Yahoo has revealed that it will be creating new jobs by opening two facilities in Nebraska.

A new 150,000 square foot datacentre will be built in LaVista to house one of Yahoo’s domestic data processing centres, while a second facility for customer care will be built in Nebraska's biggest city, Omaha.

“I am excited to welcome Yahoo to Nebraska,” Governor Heineman said.

“These two projects present an extraordinary opportunity for Nebraska. It leaves no doubt that Nebraska can successfully compete for technology jobs.”

The company said a number of financial incentives made the state an attractive location, including the Nebraska Advantage programme, which gives investment and wage credits to incoming technology companies, as well as refunds on sales tax of capital purchases and a 10-year personal property tax exemption.

Nebraska is making a major play to lure technology firms to the state, which is traditionally dependent on agriculture and a few key industries. It is one of several mid-west states trying to attract technology jobs from the more expensive US coastal zones.

Kevin Timmons, vice president of operations for Yahoo, said, “We’re very pleased to be partnering with the state of Nebraska to build this new datacentre."