Utah’s tax incentives for data centers are among the most attractive in the nation. That’s according to a new brief from Aligned Energy that hones in on the state, and Salt Lake City, in particular — a rapidly growing data center destination. Many are being drawn by the chance of leveraging tax incentives to generate significant savings – millions of dollars in many cases.
Utah has consistently ranked as one of the nation’s most diverse and highest performing economies for the past 20 years. And the state holds the record for the most years in first place on Forbes’ list of “Best State for Business. ”
“Utah implements business-cognizant policies and supports a tax structure that promotes economic prosperity and job growth, upholding the state’s strong business climate,” the report states.
And that’s not the only reason Salt Lake City is a top 10 U.S. multi-tenant data center market.
On top of tax incentives, the area touts an extensive fiber infrastructure, and the fastest internet speeds in the Intermountain West, the brief points out.
Utah also is home to some of the cheapest electricity and natural gas rates in the nation, and renewable energy sources, such as solar and wind, are growing.
TAS also points out that classified as a cold desert, Utah’s low humidity levels make it ideal for ambient cooling.
“Overall, Utah’s tax environment is very competitive with other states tax rates.” — TAS
Further, in Utah, qualified data center owners, operators and clients are exempt from sales tax on purchases of data center equipment with an economic life of at least one year that is used in their operations at the data center.
“For us, the exemption provides savings on purchases of equipment ranging from generators to network switches. For our clients, the exemption provides savings on purchases of equipment ranging from servers to monitoring software – substantially reducing the total cost associated with colocation,” TAS says., explaining how at Aligned Salt Lake City, colocation clients can leverage tax incentives to generate significant savings.
Get the new report, “Utah Tax Advantages Can Mean Millions in Savings for Salt Lake City Data Center Clients,” courtesy of Aligned Energy, to further explore the benefits of Utah tax incentives for data center clients.