Global data center services provider CyrusOne (NASDAQ: CONE) today said that recently approved new data center legislation is expected to benefit customers deploying new space in its Massively Modular® facility in Carrollton. The Carrollton tax incentive is a build on to the Texas state incentives (H.B. No. 1223) passed in June, which eliminated the state sales and use tax of 6.25 percent on data center utilities, infrastructure, and networks purchases. The Carrollton-specific incentive rebates up to another 0.5 percent in sales and use tax for the same customer purchases, or up to 50 percent of the taxes the city would normally receive.
"This tax incentive will translate into as much as $31 million in savings over 10 years for a large data center deployment. These are savings that enable the provider to hire more highly skilled technology positions to the Carrollton data center,' said Gary Wojtaszek, president and CEO, CyrusOne. "This all further enhances the ecosystem of technology companies that have already found this to be a highly desirable location to do business.'
CyrusOne customers eligible for the incentive must create at least 20 qualifying jobs in Carrollton, occupy at least 100,000 square feet of space to process, store, and distribute data, and agree to a significant investment in CyrusOne'sCarrollton facility over a five-year period. Because the city of Carrollton sales tax incentive policy for data centers is being proposed in conjunction with the state's temporary sales and use tax exemption (H.B. No. 1223), customers must have first qualified for and received the temporary sales and use tax exemption from the state in order to apply locally.
"We've been proud to be CyrusOne'sNorth Texas home since the start. The investment the company made in its facility here and its designation as the corporate headquarters speaks volumes about the vitality of our business climate, the talent of our workforce, and the vibrancy of our city,' said Carrollton Mayor Matthew Marchant. "These new data center incentives we now offer customers in our community are another example of our work to diversify and leverage development opportunities here.'