Global Data Center Services Provider CyrusOne Says Customers to Benefit from Carrollton, Texas, Data Center Tax Incentives
Local incentive builds on Texas House Bill No.1223 passed in June, to eliminate a combined total of 6.75 percent in sales and use tax on eligible data center customer purchases
DALLAS--(BUSINESS WIRE)-- Global data center services provider CyrusOne (NAS: CONE) today said that recently approved new data center legislation is expected to benefit customers deploying new space in its Massively Modular® facility in Carrollton. The Carrollton tax incentive is a build on to the Texas state incentives (H.B. No. 1223) passed in June, which eliminated the state sales and use tax of 6.25 percent on data center utilities, infrastructure, and networks purchases. The Carrollton-specific incentive rebates up to another 0.5 percent in sales and use tax for the same customer purchases, or up to 50 percent of the taxes the city would normally receive.
CyrusOne's Carrollton Data Center (Photo: Business Wire)
"This tax incentive will translate into as much as $31 million in savings over 10 years for a large data center deployment. These are savings that enable the provider to hire more highly skilled technology positions to the Carrollton data center," said Gary Wojtaszek, president and CEO, CyrusOne. "This all further enhances the ecosystem of technology companies that have already found this to be a highly desirable location to do business."
CyrusOne customers eligible for the incentive must create at least 20 qualifying jobs in Carrollton, occupy at least 100,000 square feet of space to process, store, and distribute data, and agree to a significant investment in CyrusOne's Carrollton facility over a five-year period. Because the city of Carrollton sales tax incentive policy for data centers is being proposed in conjunction with the state's temporary sales and use tax exemption (H.B. No. 1223), customers must have first qualified for and received the temporary sales and use tax exemption from the state in order to apply locally.
"We've been proud to be CyrusOne's North Texas home since the start. The investment the company made in its facility here and its designation as the corporate headquarters speaks volumes about the vitality of our business climate, the talent of our workforce, and the vibrancy of our city," said Carrollton Mayor Matthew Marchant. "These new data center incentives we now offer customers in our community are another example of our work to diversify and leverage development opportunities here."
Data Center Legislation Benefits Customers
Located on Frankford Road, CyrusOne's Carrollton site boasts 630,000 square feet, including raised white floor and Class A office space. CyrusOne's unique Massively Modular facility design approach enables quick deployment of customer data center requirements, including single-purpose-built dedicated facilities as well as shared infrastructure solutions. The facility is designed to rapidly accommodate the minimum 100,000 square feet of customer footprint required for incentive eligibility.
The incentives provided under this policy are in the form of a tax rebate. The Carrollton City Council reviews each incentive request on a case-by-case basis and determines the percentage of sales tax to be rebated — up to one-half of the 1 percent sales and use tax on operational property purchases, such as electricity, a server, network connectivity equipment, a rack, cabinet, and raised-floor system, among 10 other high-value eligible purchases.
"The City of Carrollton's commitment to this additional tax incentive, combined with CyrusOne's new Internet Exchange product, which provides our Internet customers with access to hundreds of networks to easily access, transmit, and manipulate data, solidifies the city of Carrollton as one of the premier technology cities in the Dallas-Fort Worth metroplex," said Wojtaszek.
Delivering Best-in-Class Enterprise Facilities and Robust Connectivity
CyrusOne specializes in highly reliable enterprise data center colocation solutions and engineers its facilities with the highest power redundancy (2N architecture) and the power-density infrastructure required to deliver excellent availability.
Customers also have access to the CyrusOne National Internet Exchange (National IX), which marries low-cost robust connectivity with the massively scaled data centers that CyrusOne is known for by virtually linking a dozen CyrusOne facilities in five metropolitan markets (Dallas, Houston, Austin, San Antonio, and Phoenix). As a result, CyrusOne customers have an opportunity to go beyond the benefits of a single data center and efficiently architect a data center platform for their production or disaster recovery solution using multiple data centers connected by powerful, low-cost carrier-grade connectivity. This approach represents a true paradigm shift in the way companies are managing the creation, access, and sharing of their data.
Moreover, the CyrusOne National IX provides customers with the opportunity to drive additional revenue by improving their immediately addressable market, to reduce expenses with a lower-cost option for point-to-point connectivity between data centers, and to improve service quality through higher levels of resiliency.
CyrusOne operates 25 carrier-neutral data center facilities across the United States, Europe, and Asia that give customers the flexibility and scale to perfectly match their specific growth needs. The company is renowned for exceptional service and for building enduring customer relationships and high customer satisfaction levels. Customers include nine of the global Fortune 20 companies and more than 100 of the Fortune 1000.
CyrusOne (NAS: CONE) specializes in highly reliable enterprise-class, carrier-neutral data center properties. The company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for more than 550 customers, including nine of the global Fortune 20 and more than 100 of the Fortune 1000 companies.
CyrusOne's data center offerings provide the flexibility, reliability, and security that enterprise customers require and are delivered through a tailored, customer service-focused platform designed to foster long-term relationships. CyrusOne's National Internet Exchange (National IX) platform provides robust connectivity options to drive revenue, reduce expenses, and improve service quality for enterprises, content, and telecommunications companies. CyrusOne is committed to full transparency in communication, management, and service delivery throughout its 25 data centers worldwide.
gyro for CyrusOne
Lisa McLaughlin, 513.671.3811
KEYWORDS: United States North America Texas
The article Global Data Center Services Provider CyrusOne Says Customers to Benefit from Carrollton, Texas, Data Center Tax Incentives originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.