Data Centers

Data Centers.jpg

Tax Incentives and Advantages

Companies that build data or network operation centers of at least 25,000 square feet and invest $30 million in the first four years qualify for valuable tax breaks.

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.

Favorable tax provisions give Minnesota data centers important competitive advantages.

The state's business taxes rank 20th-lowest in the nation. Minnesota's carry-forward and lack of a throwback encourage business startups.  The refundable research and development credit (10 percent for the first $2 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.

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