United Healthcare Plans $124M Facility

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United Healthcare Services is planning to spend $124 million to build a 189,000 square foot data center in Elk River, Minnesota, according to local media reports. The company could get as much as $850,000 in property tax rebates from the city, a suburb of Minneapolis. United HealthCare hopes to begin construction in March and complete the project by September 2008.

The Elk River Economic Development Authority (EDA) has offered the company a property tax rebate of up to 5 percent of the assessed market value of the project with a $1 million cap as an incentive to come to Elk River. As part of the deal, within two years the company must create 20 new full-time positions at a minimum hourly wage of $24. The news story doesn’t mention power issues, but Elk River has been dubbed Energy City for a program in which the city provides financial incentives for businesses that incorporate efficient and renewable energy technologies into their buildings.

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.