Thomas Quinn, CEO of Gotspace, says Connecticut’s new data tax incentive law will help launch a New England data corridor between NYC and Boston. With explosive data center growth and the need for hyperscale and large colocation development in areas of inexpensive and abundant utility—coupled with main trunk fiber connectivity and 35 million people within 200 miles—Gotspace has achieved ALL the metrics for the Northeast’s critical IT development needs.
Got Big Data Tax Incentives?
Yes! On March 5, 2021, Connecticut governor Ned Lamont signed into law a best-in-class data tax incentive (State of Connecticut HB 6514). Gotspace was instrumental in the process by creating the big data draft incentives, working with the State of Connecticut and the DECD Commissioner, and lobbying the bill to supermajority approval.
Incentives includes a 20-year sales, use, and property tax exemption with an investment of $200 million and a 30-year sales, use, and property tax exemption with an investment of $400 million. This contractual agreement locks down these incentives to meet the thresholds of investment commitment.
In addition, these Connecticut data tax incentives are free from jobs reporting/jobs thresholds or data center requalifications, making this the simplest and most straightforward guaranteed data tax incentive in the US. Connecticut’s big data law also defines financial and banking relocation opportunities with an unprecedented 30-year financial transaction tax exemption.
Yes! Gotspace tapped the municipal utility network to lower managed electricity costs to national market deltas. On Feb. 11, 2021, New England’s annual capacity auction for power system resources concluded with sufficient resources to meet peak demand in 2024-2025, with preliminary clearing prices ranging from $2.48 per kilowatt-month (kW-month) to $3.98 kW-month across different pricing zones. 20-year utility contracts with extensions are currently available.
As part of this work, Gotspace developed exclusively entitled campuses, covering more than 1,700 acres, all located within these low-cost-of-utility areas. The grid supports abundant utility and Gotspace’s sites are strategically designed around large substations or 345 kV with defined pathways.
Yes! Connectivity is immediately adjacent to Gotspace campuses and main trunk fiber, with excellent latency between NYC, Boston, and beyond over multiple fiber providers.
Got Northeast Regional Demand?
Yes! The region is home to more than 100 major insurance companies, large med-tech and big pharma, financial institutions, US defense contractors, AI and edge computing opportunities and much more. At this time, nearly all this data storage is outsourced—and 10% of the US population lives there!
Yes! Gotspace’s Master Developer “Ready to Market” approach offers exclusive big data opportunities in municipalities with inexpensive and abundant electricity. Campuses in these municipal utility areas are finite and offer multiple scalability options. Gotspace offerings range up to 300 acres.
Got “Ready to Market”?
Yes! The new data tax incentive requires municipal hosting agreements which are presently fully negotiated and executed to support these big data campus developments—saving months of long contractual delays. Gotspace’s municipal hosting agreements define a fixed-stepped fee based on MW usage, paid annually, and other terms, starting one year from building occupancy.
Yes! Siting of data centers are available from 150,000 to 1.5 million square feet. Any company seeking northeast data center investment and development opportunities will not elsewhere achieve this combination of tax incentives, in-place entitlements and low utility cost with state and municipal cooperation and multiple fast fiber providers.
For more information, contact Gotspace CEO Thomas Quinn at [email protected].