CW Data Center Global Market Comparison 2020

POLITICAL AND REGULATORY REVIEW

For those projects that are not large enough to qualify for specific data center-related incentives, a lower tax rate on equipment purchases can be incentive enough. While these jurisdictions may have other taxes to compensate, initial development or expansion can be more attractive.

PORTLAND The only U.S. market studied that has no sales tax, creating a compelling incentive by itself. NORTHERN VIRGINIA Very low sales taxes are another key reason for locating in Northern Virginia. HONG KONG A main site for global business that has no value-added tax. THE TOP FIVE LOWEST TAXES BOSTON Boston’s low taxes offset the high power costs in-market. SEATTLE Low sales taxes on equipment in Seattle are an additional benefit to the existing incentives and low-cost power.

SALES TAX/VALUE ADDED TAX

25%

20%

15%

10%

5%

0%

Source: Cushman & Wakefield Research