Guide to Data Center Tax Incentives

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Tax incentives from state and local governments are an increasingly important component of site searches for data center projects. About a dozen states now have customized incentives programs for data center operations, which focus on full or partial exemption of sales/use taxes on equipment, construction materials, and in some cases purchases of electricity & backup fuel.

The Role of  Incentives in Data Center Location Decisions provides an overview of incentive programs, and examples of how some states structure their programs. The guide was put together by John Lenio, Economist and Managing Director of CBRE Economic Incentives Group. Best of all, the article includes a chart that outlines the type of incentives offered by 23 states that are actively competing for new data center projects. Check it out on the CBRE web site.

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.

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