pg_update to a new machine?

The 2.8TB database must be moved to a new server in a new Data Center, and upgraded from 8.4.17 to 9.6.6

Will this work?

pg_upgrade       --old-datadir "CURSERVER://var/lib/pgsql/data"       --new-datadir "NEWSERVER://var/lib/pgsql/data"       --old-bindir "CURSERVER://usr/bin"       --new-bindir "NEWSERVER://usr/bin"

Or must I:
1. temporarily allocate 3TB of scratch space on the new server,
2. install 8.4 on the new server,
3. install 9.6.6 on the new server,
2. rsync CURSERVER://var/lib/pgsql/data to NEWSERVER://var/lib/pgsql/8.4/data, and then
3. pg_upgrade?

Are there better ways?  (The pipe from current DC to new DC will be 10Gbps.)

Thanks