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Data Center Sales Tax Incentives

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.

In addition, Minnesota DOES NOT tax:

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

These exemptions create an extremely favorable climate for data centers.

Companies that refurbish a data or network operations center of at least 25,000 square feet and invest $50 million in the first 2 years qualify for the Data Center Sales Tax incentives.

Apply for the Sales Tax Exemptions

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

Complete this Data Center Certification Application (for an accessible version of this document contact Stephen Wolff at 651-259-7415) and submit according to the instructions.

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

For More Information

Contact Stephen Wolff, 651-259-7415.

Read the enabling statute Minn. Stat. 297A.68, Subd. 42.

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