Why the Minnesota Technology Corridor is an Ideal Location for Data Centers

New businesses in the data and technology industries continue to move to the Minnesota Technology Corridor, located just north of Minneapolis in Washington and Anoka counties. Major organizations like Infinite Campus are reaping multiple benefits from operating here, including state and city-level incentives, low utility rates, top-notch talent, and optimal warehouse locations.

“More companies than ever are discovering what we’ve known for years: Minnesota is an excellent place to move your business,” says Chris Eng, Economic Development Director for the Washington County Community Development Agency. “In particular, the Minnesota Technology Corridor has become a hub for skilled workers within the data and development industries. There’s no better place in the country to move your data center.”

A recent report by Excipio Consulting reviewed the viability of opening data centers in the region. Here are a few highlights that prove the Minnesota Technology Corridor is an optimal location for these buildings.

The Minnesota Government Has Ample Tax Incentives and Grants

The state of Minnesota recognizes the value data centers and other technology-focused businesses have on the local economy, which is why it has developed multiple incentives to support organizations that want to move here. Here are a few financial benefits of relocating or expanding your business to Minnesota:

• Data Center Sales Tax Incentives: Qualifying companies can receive 20 years of tax exemptions on spending related to computers and servers, cooling equipment, energy use, and software. This incentive supports organizations that operate data centers of at least 25,000 square feet and invest at least $30 million within 48 months.
• Additional Tax Exemptions: Along with the data center exemptions, the state of Minnesota does not tax custom-created software utilities, internet access, information services, inventories, or personal property. This further reduces your tax bill. 
• Job Creation Grants: Companies can receive up to $1 million for creating or retaining high-paying jobs in the region. Companies only need to create 10 new jobs in the region to qualify.

These incentives make it financially beneficial for companies to move their data centers to Minnesota. They prove that you will be compensated in the long run for the cost of relocation.  

Minnesota Has an Optimal Climate for Data Centers

Not only is Minnesota a financially beneficial state for data centers, but it is also geographically strategic. Minnesota is significantly cooler than most states in the county, which lowers your utility rates and makes it easy to run your data centers. The median Summer temperature is only 67 degrees, with Fall and Spring temperatures ranging from the low to mid-40s. Researchers estimate that data centers have 300 days free of cooling costs annually because of the naturally cold climate.

“You will need a coat when you live in Minnesota,” says Eng. “But you will not need to worry about your servers and other equipment overheating. You will also not have to budget for high air conditioning bills because the climate stays cool.”

Research shows that less than four percent of tornados touch down in Minnesota, making it a safe state for your operations. 

You Can Find Skilled Workers for Your Data Center

The Excipio Consulting report also found that the Minnesota Technology Corridor is a valuable region for hiring tech-centric employees, setting it apart from other parts of the state. It highlights the City of Centerville, which is located along I-35E and only 25 minutes from both downtown Minneapolis and St. Paul.  Many of its 4,000 residents are involved in the IT and engineering fields.

Minneapolis is also packed with educated residents. It ranks second in the nation for residents with higher education degrees – half of all Minneapolis citizens have an associate’s degree or higher. 

Choose the Minnesota Technology Corridor for Your Data Center

Minnesota makes sense for data centers. It has several economic tax credits and incentives for businesses, naturally has a cold climate to keep your servers cool, and has an ample workforce with the degrees and experience you need to fill your positions. The Minnesota Technology Corridor stands out against the rest of the country as the best and most financially beneficial option for relocation.

Learn more about the Minnesota Technology Corridor and discover how your business can thrive here.