The Future of Data Centers

Data centers are becoming a thing of the present as cloud computing applications and social media continue to grow. Data centers are large groups of networked computer servers. They are primarily used for remote storage, processing and distribution of data. Many large companies have applications (apps) and services that rely on a data center to keep things running smoothly. In 2018, data center space is expected to grow to 1.94 billion square feet in comparison to 1.58 billion square feet in 2013. Having a data center under the control of the corporation can be a great asset. For companies that choose to own their data center, it helps to ensure reliability, access and security of mission-critical information. For companies who contract with cloud application providers, shared data centers offer a cost structure at a fraction of the individual support costs.

Minnesota is one the most ideal places to locate a data center for the following reasons:

Leading-edge broadband infrastructure: Minnesota is heavily connected to fiber, cable, DSL and wireless broadband networks, with the infrastructure in place to help prospective data centers locate and expand.

Named America’s Top State for Business by CNBC (2015): Based on 60 measures of competitiveness in 10 categories, MN was ranked top 10 in education, technology and innovation, quality of life, infrastructure, economy.

Valuable data center tax breaks and no personal property tax: tax exemptions for 20 years on: computers and servers, cooling and energy equipment, energy, software. 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 the tax break.

Domestically competitive, reliable power: Electricity is exempt from sales tax for qualified data centers. Commercial and electric rates have been historically below national average. Minnesota power companies are reliable and get high approval ratings from business customers. Minnesota also offers a naturally cool, safe climate for business that decreases the cost for cooling data centers.

For help with your next Data Center decision, call IAG Commercial at 612-868-7429.