JLL’s 2015 Data Center Outlook has been released and it shows that affordable utility rates and tax incentives are driving a large portion of the industry’s growth.
According to Jon Meisel, JLL’s East Region lead for Data Center Solutions, “It’s still about locating near infrastructure robust metropolitan areas…But it’s also about finding ways to be efficient with their locations. If that means placing some part of their footprint in regions with more flexible utility costs, incentives packages or lower taxes, providers will expand into those areas.”
This report examines some of today’s most competitive data center locations across the country including:
- Chicago: There has been an increase in demand for space in Chicago from West Coast technology companies who are developing sites for cloud hosting strategies in the Midwest.
- Dallas: At 5 cents per KwH, Dallas provides one of the country’s most affordable major market utility rates. Further, Texas passed tax incentive legislation that provides 100 percent exemption of sales taxes on business personal property to operate a data center over 10 to 15 years for large users.
- Reno: The Biggest Little City in the World is experiencing its first foray into data center development led by Apple, Switch and eBay due to an abundance of power specifically in renewable resources.