Texas gives data centers location incentive

TEXAS – New data center tax incentives are set to strengthen the state’s allure as a corporate expansion and relocation market, according to CBRE’s global research and consulting group.

Texas H.B. 1223′s tax structure will add to the state’s low cost of power, robust fiber infrastructure, large and well-educated workforce, low cost of living, and affordable real estate.

The program provides 100 percent exemption of sales taxes on business personal property essential to data center operations, including things like computers, electrical equipment, cooling systems, power infrastructure, and software.

Although they typically don’t create a lot of jobs, data centers still have a significant impact on a state and community, according to John Lenio, economist and managing director of CBRE’s economic incentives group.

For example, in Texas, a data center with a $500 million capital investment creates the same impact as a 500-job corporate headquarters.