Lower taxes often suggest a friendlier business climate, enabling further expenditure on development and overall business expansion. Several markets that finish in the top ten for lowest taxes have long been key data center hubs.
SALES TAX PERCENTAGE
HONG KONG PORTLAND NORTHERN VIRGINIA BOSTON SEATTLE NORTHERN NEW JERSEY
*NEW MARKET IN 2021 REPORT
Source: Cushman & Wakefield Research
As most data center incentive packages have eight- to nine-figure minimum investment amounts, a low sales tax/VAT regime is an attractive location determinant. The wide spread across the 48 markets studied indicates rates in the highest-taxed locations to be two to three times those of the lowest-taxed. FAST FACT