Twin Cities Data Centers

The Minnesota State government has made it more attractive than ever to build a data center in Minnesota. In addition to the State government never charging personal property taxes, sales taxes are exempt for 20 years on the following elements of a data center project*:

  • Computers & Servers
  • Cooling & Power Systems Infrastructure Equipment
  • IT Racking & Cabling Systems
  • Energy Use
  • Software

In order to qualify for the tax break, data and network operation centers need to be at least 30,000 sq ft and invest $50 million in the first two years.

*for more details, please see Minnesota Statutes: 297a.68 Subd. 42

Beyond Data Center incentives, Greater MSP, the Minneapolis Saint Paul Economic Development Partnership, can offer a wide variety of other assistance, incentives and loans for data centers, including:

  • Research Tax Credit
  • Local Energy Improvements Financing
  • Training Grants
  • The Minnesota Investment Fund
  • Angel Tax Credits
  • The Growth Acceleration Program

More information on any of these programs can be provided by Colliers or by contacting Gene Goddard, the Director of Business Development for Greater MSP at gene.goddard@greatermsp.org.

Minnesota Information

Mid country location: Less than 4 hour flight to either coast’s
major cities
Climate: Cooler climate provides facility cooling
efficiencies 615 Annual Cooling Degree degrees in 2010 (NOAA)
Natural Disasters: Low risk Tornado zone, Seismic zone rating
0
Electricity Cost: 23% lower than US average
Water: Low-cost, abundant water supply
Corporate Market: Robust with 21 Fortune 500 Public companies
and 12 Fortune 500 Private companies
Educated Workforce: Fed by top tier U of M research institution
and 5th largest higher education system in US
IT Talent: 87,000 people employed in MN technology
workforce

Catastrophic risk map