Data Centers

Special incentives, lower business taxes, lower energy costs, top-shelf infrastructure and a highly skilled workforce make it more attractive than ever to build data and network operation centers in Minnesota.

Download a brochure on locating a data center in Minnesota.


Tax Incentives
Companies that build data or network operation centers of at least 30,000 square feet and invest $50 million in the first two years qualify for the tax break.

Qualifying projects receive sales tax exemptions for 20 years on:

  • Computers and servers
  • Cooling and energy equipment
  • Energy use
  • Software

And pay no personal property tax - ever.


Lower Business Taxes
Favorable tax provisions give Minnesota data centers important competitive advantages.

The state's business taxes rank among the 10 lowest in the nation; Minnesota's carry-forward and lack of a throwback encourage business startups; and the refundable research and development credit (10 percent for the first $2.5 million, 2.5 percent thereafter) spurs innovation and helps offset some tax liabilities.

In addition, Minnesota DOES NOT tax:

  • Personal property
  • Inventories
  • Utilities
  • Internet access
  • Information services
  • Custom-created software

These exemptions, coupled with generous incentives and low tax liability on new investment, create an extremely favorable climate for data centers.


Minnesota's moderate climate means cooler temperatures and fewer storms.

Outside air is a natural alternative for keeping servers cool while lowering utility costs. For companies interested in advanced technology that uses lake water for data center cooling, Minnesota has nearly 12,000 lakes.

Moderate average seasonal temperatures make Minnesota less prone to storms and decrease the possibility of costly storm-related damage and downtime.


Reduced Utility Costs
Minnesota has some of the lowest energy costs in the nation. And electricity is exempt from sales tax.

A typical data center using 120 to 200 million watts of electricity annually can save millions of dollars (based on average electricity price per kilowatt hour) by locating in Minnesota.


High-Quality, Affordable Workforce
Minnesota delivers a highly educated workforce well suited for any data center, with thousands of undergraduate and advanced degrees awarded each year by the public and private colleges statewide.

With a mix of experienced workers and new college graduates, the state offers a professional workforce and competitive wages that will help any data center thrive.


Cutting-Edge Infrastructure
Heavily connected to fiber, cable, DSL and wireless broadband networks, Minnesota has the infrastructure in place to help data centers startup, locate and expand.

Networking Your Network
Minnesota has the professional network and experience to help your data center succeed. Forty companies with 340 combined data processing, hosting and related establishments (employing nearly 4,800 workers) call the state home.

Nineteen Fortune 500 companies have their corporate headquarters in Minnesota.


For More Information
Contact Jim Gromberg at 651-259-7436 or email

Download a brochure on locating a data center in Minnesota.