CW Data Center Global Market Comparison 2020

L o w M i d H i g h

INCENTIVES

CATEGORY WEIGHT

To attract data center investment, many areas at the national, state/provincial or local level offer a varying package of incentives in the form of tax relief. This can mean a reduced sales tax on the purchase of equipment, lower or exempted property taxes, or even reduced power taxes for meeting objectives. Most of these incentives require a minimum financial investment, along with multiple permanent employees hired at an above-average wage. While in many countries incentives are determined on a case-by-case basis, certain markets have chosen specifically defined plans. The United States is leading the way in incentives, with 25 of 50 states now offering their own packages. Nevada and Arizona have proven most aggressive, with exemptions starting at $25 and $50 million for Las Vegas and Phoenix, respectively. Other long- standing top tier markets are also buoyed by incentives, including Northern Virginia and Dallas, and Chicago looks to benefit from a new package launched by the State

of Illinois in 2019 for invested amounts of $250 million and 20 permanent hires. An intriguing new incentive came online in 2019 for data center development in Paris, with the French government offering an electricity tax cut that halves the price of electricity for large projects. Operators would be required to adhere to strict environmental standards, though these may also prove cost effective.

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