Google Joins Other Tech Firms Expanding in Minnesota
15 Oct 2020
Billions are being spent on data centers to support the massive increase in internet usage and data storage. Minnesota and the Minnesota Tech Corridor are poised to receive some of these investment dollars as companies like Google choose to make the area home.
Google is building a $600 million data center on 300 acres. This data center will benefit from the low cost energy rates and sustainable energy options available through Xcel Energy Inc. - a deciding factor in the company opening a data center in the region. They are joining companies like Prudential, Wells Fargo, Toro Company, Land O’Lakes, and Medtronic who have data centers in the state. Simultaneously, the real estate cost in Minnesota is significantly lower than it is in coastal states, creating another reason to move further away from the company headquarters and into the heart of America.
In specific, the Twin Cities and Minnesota Tech Corridor are prime to be a top Tier 2 data center marketplace due to available tax incentives, affordable utility rates and access to the tech talent graduating from the large regional university system.
There are tax advantages for locating in the Minnesota Tech Corridor
Companies locating in the region will pay no personal property tax, no inventory tax, no utility tax, no internet tax, no information services tax and no tax on custom-created software. For data centers and tech companies this can create significant savings.
Incentives are available for data centers
The state of Minnesota is incentivizing data centers to come here. Companies who build a 25,000 square foot plus data center or network operations centers and invest $30 million or more within 48 months would qualify for the data center. Companies who meet this threshold may receive sales tax exemptions for up to 20 years on computers and servers, energy use, software, cooling and energy equipment.
Why your company should locate in the Minnesota Tech Corridor
Site selectors and executives should consider some of the clear advantages of locating in the Minnesota Tech Corridor, including:
- Real estate is more affordable in the Minnesota Tech Corridor than in coastal states or in neighboring Minneapolis/St. Paul
- 90% of households in the region have broadband access
- Reliable green power
- Minnesota is a Top 5 State for business
- Minnesota is incentivizing data centers with tax breaks
- There is no property tax for companies locating here
- We have top tech talent graduating from local universities
Make the call. Discover the benefits of Minnesota Tech Corridor for your company. Contact us here.