Simplifying the Mystery of Tax Incentives for Data Center Clients

by Evan Bass
06 November 2020

 

 

In 25 U.S. states today, colocation data center clients can save big money through various tax incentives. However, tax incentives can seem complicated to interpret. In the video above, two tax experts simplify the mysteries of tax incentives for data center clients.  

Stefanie Williams, research analyst at 451 Research (a part of S&P Global Market Intelligence), and Nahom Essaw, director and controller for NTT Global Data Centers Americas, share some straight facts about tax incentives that data center clients can use to save money and improve their ROI. 

Stefanie and Nahom discuss their answers to these two main questions: 

  1. What is the most straightforward tax incentive for data center customers? 
    Sales and use tax exemptions exist in states with prime data center locations such as Virginia, Oregon, and Arizona. Data center clients at colocation facilities in those states can save 6-9% on new equipment purchases by not paying sales tax. 

  1. What tax incentives do data center customers not know about?  
    One example is that data center clients can enjoy 100% property tax relief when their colocation operator has negotiated effectively with tax authorities on their behalf.  

Keep in mind that tax incentives for data center clients are continually evolving. Colocation providers are always working with state governments to get new bills introduced or revise existing legislation to help clients save on data center expenses.   

You can hear more about tax incentives in this video, and please feel free to contact us at sales@ragingwire.com with any questions you may have. 

Evan Bass

Marketing Communications Manager