Incentives encourage large capital investment across the state
Texas Insider Report: AUSTIN Texas Texas Gov. Rick Perry has approved major tax incentives for companies that open new data centers in the state.
The incentives provide a sales tax exemption for electricity consumption and equipment purchases such as servers generators storage devices software and other systems necessary for data center operation.
The law designed to bring in new technology firms and capital investment is expected to make Texas the chief destination for companies looking to open data centers. The state had long been a preferred location for large data center users due to its central location healthy economic climate reliable electric grid low occurrence of natural disasters educated workforce and pro-business environment.
These are aggressive tax incentives and they are going to make Texas more competitive than any other state" said Brad Enloe who works with CAPSTAR Real Estate Advisors and has a partnership in the 3000 Skyline Dallas data center building.
To qualify for a ten-year sales tax exemption data centers must create high paying jobs and invest at least $200 million within a five year period. That exemption extends to 15 years with a $250 million investment. Data center owners operators or tenants could all qualify for the refund.
The tax incentives are expected to attract investment to communities across the state with companies such as CAPSTAR investing in Dallas and Houston and Zachary in San Antonio.
The tax incentives will take effect Sept. 1.
