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FOCUS LOCATION UPDATE


Issue 10, June/July


LINES TO ATTRACT INVESTMENT The war of independence might be long over in the US, but try telling that to the many states and cities now competing to attract companies willing to make major investments in building new data centers


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issouri has recognised it has fallen behind other US states in attracting the employment and tens of millions of dollars that a


large data center can bring to city and state. As a result, it is currently tabling laws that would make it more attractive to potential investors.


States including Kansas, Iowa and Oklahoma are already reaping the rewards for introducing tax incentives that make building a data center much more attractive to large companies. “There has been a lot of talk about revenue shortfalls this session,” said Daniel Mehan, Missouri Chamber of Commerce and Industry president. “The way to narrow the revenue gap is to create jobs and, bottom line, these proposals are jobs bills.”


A range of new bills being put forward would establish state and local tax exemptions for data centers. These include tax credits to new businesses in industrial zones certified as Enhanced Enterprise Zones, tax exemptions for data centers and server farms from certain kinds of sales tax, and tax credits schemes dependent on size and the number of new employees taken on.


“Decisions on where to place data center operations are happening now,” Mehan said. “There are more than $10bn in potential investment on the table in the next three years. As a state, we can either go in the direction to secure our share, or be left behind.”


Washington State has learned from its own mistakes and has just enacted new tax incentives to make it more attractive for large companies to build data centers in rural areas.


The irony is that the incentives now enacted were the same ones rejected a year ago and were partly to blame for Microsoft pulling its cloud computing platform – Azure – out of the town of Quincy. The town plays host to large server farms owned by Microsoft, Yahoo and Intuit, thanks to the availability of cheap, renewable hydropower.


52 www.datacenterdynamics.com


Washington State – new tax exemptions introduced in WA apply to the following: • Sales of server equipment for data centers; • Labour and service charges for installing servers; and


• Sales of power infrastructure equipment, along with labour and services during installation.


Representatives for Quincy say the new tax changes are already working, with the town registering an upswing in interest from companies looking to locate data centers there.


DOWNTOWN CHICAGO GETS GREEN DATA CENTER


Downtown Chicago is set to get a badly needed boost in data center space, following the green light given by the city to JRM Technology’s plans to build a 315,000 square foot data center.


Located at 111 E Cermak, the project is a six- story, ground-up data center that will include 143,000 square feet of raised floor area.


Data center space in Chicago is at a premium thanks to the online trading activities of large financial firms. “This will be the first data center in the downtown area designed and built specifically as a data center from the ground up,” said JRM principal James McHugh.


Construction will start in the autumn with a predicted completion data of late 2011. JRM plans to seek Gold LEED certification for the building, which will include louvers along the walls for fresh air cooling and a green roof of vegetation spanning 10,000 square feet.


The design calls for a reinforced concrete structure, heavy floor loading and 18ft high ceilings. 


GREEN LIGHT FOR CANBERRA TECHNOLOGY CENTRE


Following two years battling to secure more than £600m in funding, Australia is set to get


Canberra Parliament, Australia


one of its biggest and greenest data centers spanning 14,000 square metres.


Proposed by Technical Real Estate (TRE) and backed by funding from Challenger Financial Services, the Canberra Technology Center (CTC) in Hume will be powered by an onsite gas-fired co-generation power plant.


TRE says the plant, located on a 31-acre greenfield site, will feature “the world’s most advanced liquid CO2 cooling for high-density computing”. The site will be capable of hosting 14 separate facilities.


“The site will be progressively developed over the next 10 years, and TRE will lead the process to get pre-commitment,” said Trent Alston, head of real estate for Challenger. “TRE’s main contribution is sourcing key tenants, [as] site development will be tenant-led.”


The onsite power plant means that CTC will be capable of operating independently of the Canberra electricity grid.


Canberra, with the most advanced fibre optic network in the country, is considered to be the heart of Australia’s information economy, with many of the largest carriers based there.


The first facility at CTC will go online next year. 


US STATES DRAW DATA CENTER BATTLE


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