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Data centers make good neighbors. They don’t require many services, beyond water and power. If they bring jobs, those jobs require education and pay well. The centers are usually in expensive buildings, specially constructed to house computer equipment in a climate-monitored environment. The equipment is frequently upgraded or replaced to keep pace with emerging technology. Data centers also usually stay for a while, as it’s not easy or inexpensive to move them.

These are some of the reasons why states and localities line up to lure data centers and assure long-term property, sales and utility tax streams. Northern Virginia, the Dallas Metroplex, Chicago, New York and New Jersey have concentrations of them. But data center corridors also have sprung up in rural North Carolina, Iowa, Nebraska, Utah and other places where buildings aren’t as tall.

These areas are going the extra mile to lure the good neighbors, and in doing so, are exploding some myths about what companies can demand when deciding where their data centers should be located.

This was the key theme of a recent Site Selection Magazine (scroll to page 59) article by Altus Group’s Tom Dubel titled, “Data Center Location Myths to Avoid,” which tackled four major myths about data centers and location strategies.

Tom dispels myths about incentives being tied to job creation; incentives not being available from states and communities offering pre-packaged data center incentives; as well as the cost of operations across communities across various states and much more.

To read the full article, please click here. 

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Thomas DubelDubelbu-state-local-tax location-incentive-strategiesdata-center-taxationhunt-valley

Senior Director, State & Local Tax

Last updated on September 4th, 2019 at 05:41 pm

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