DALLAS (June 25, 2013) – T5 Data Centers, innovators in providing state-of-the-art, customizable and highly reliable computing support environments for any enterprise, is advising clients to take full advantage of the new tax incentives offered in HB 1223, the new Texas sales tax exemption for data centers that goes into effect September 1. T5 sources estimate that companies leasing space in the new purpose-built T5@Dallas facility can realize savings from $30 million to $100 million depending on the number of critical megawatts (MW) needed and the length of the lease.
HB 1223 is a stimulus bill that exempts qualified companies from state sales taxes for the development, occupancy and operation of certain data centers. Based on internal estimates, T5 customers operating a data center at 6 critical MWs could potentially realize savings of $30 million over 10 years in tax on servers, software and energy. A company with 12 critical MWs could save as much as $101 million over 15 years in taxes on servers, software, and energy costs. Exemptions include the cost of gas and electricity costs, electrical systems, cooling systems, backup systems, servers, data storage, networking equipment, rack space, fixtures, and more. T5 Data Centers’ T5@Dallas campus has space available for lease in its 22.5 MW facility, and plans to expand with an additional 12.0 MW facility to be built in the near future. T5 customers investing a minimum of $200 million will qualify for a 10-year tax exemption; customers investing $250 million will qualify for a 15-year tax exemption.
“Today’s data center users are not only searching for robust and secure environments, but first class locations as well. These new tax incentives make Plano’s Legacy Business Park an even better location for an organization looking to install a mission-critical data facility. T5@Dallas, more than ever, is the best data center in the best location for business in Texas,” said Martin Peck, General Manager of T5@Dallas.
The new tax legislation includes a requirement for qualifying data center customers to create at least 20 new full-time jobs. Certified data centers must be specifically built to house servers, data processing, and data storage equipment. In addition, the data center tenant must occupy at least 100,000 square feet and the center must be used primarily for telecommunications services.
“With passage of this new legislation, Texas becomes the 25th state to offer tax incentives for new data center installations,” said Peter S. Marin, President and CEO of T5 Data Centers. “This is a proven means to stimulate technology growth, and as T5 continues to add new data centers around the country, we look at the local economic climate, including taxes, as well as geographic conditions, the cost of energy, and other criteria to make sure our customers have the most cost-effective, sustainable data center facilities available.”
About T5 Data Centers
T5 Data Centers (T5) is a leading national data center owner and operator, committed to delivering customizable, scalable data centers that provide an “always on” computing environment to power mission critical business applications. T5 Data Centers provides enterprise and wholesale colocation data center services to organizations across North America using proven, best-in-class technology and techniques to design and develop facilities that deliver the lowest possible total cost of operations for its clients. T5 currently has business-critical data center facilities in Atlanta, Los Angeles, Dallas, and Charlotte with new projects announced in Portland and Colorado. All of T5’s data center projects are purpose-built facilities featuring robust design, redundant and reliable power and telecommunications and have 24-hour staff to support mission-critical computing applications.