Data Center Sales Tax Exemptions

A qualified data center or qualified refurbished data center may claim the exemptions for purchases made either within 20 years of the date of its first purchase qualifying for the exemption or by June 30, 2042, whichever is later.

Benefits

Qualifying projects receive sales tax exemptions on:

Computers and servers
Cooling and energy equipment
Energy use
Software

In addition, Minnesota DOES NOT tax:

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

Eligibility

Companies that build data or network operation centers of at least 25,000 square feet and invest at least $30 million within 48 months
Companies that substantially refurbish data or network operation centers of at least 25,000 square feet and invest at least $50 million within 24 months

Apply

To become a designated qualified data center and receive these sales tax exemptions, companies must first be certified to participate in the program.

Complete the Data Center Certification Application and submit according to the instructions.

Learn more about how the Minnesota Department of Revenue processes sales tax refunds for qualified data center exemptions.

More Information

For questions about applying, eligible or qualifying expenditures, how the program can benefit your company, or facility certification status contact:

DataCenter.DEED@state.mn.us

For questions about filing or checking the status of an existing sales and use tax refund claim, contact the Minnesota Department of Revenue at:

Read the enabling statute - Minn. Stat. 297A.68 subd. 42.

List of Designated Qualified Data Centers