STACK, a company providing wholesale colocation, build-to-suit data centers, and powered shell solutions in seven U.S. markets today, has qualified for a new tax program in Illinois. This program exempts qualifying data centers and their occupants from state and local sales tax on data center equipment purchases. STACK is the first data center company certified under the new legislation.
To qualify for the new program, data center operators and their occupants must invest a total of at least $250 million in their facilities and meet green building standards such as LEED or Energy Star. They must also employ 20 or more full-time employees over five years at wages at least 25 percent higher than the applicable median average county wage.
Illinois’ tax incentive is expected to bolster the data center industry in the Chicago region – the third largest data center market in the U.S. – and serve as a tool to increase competitiveness, attract new businesses, fuel new construction, and create well-paying jobs across the state.
STACK expects to offer exemptions by year-end, enabling clients at its Chicago data center campus to purchase servers, network gear, and other high-value data center equipment at reduced costs.
Data Center Campus Expansion
“We are very pleased to partner with the State of Illinois on these incentives and with Elk Grove Village on the continued development of our data center campus,” said Matt VanderZanden, Chief Strategy Officer of STACK. “It’s especially exciting to be at the forefront of offering tax-advantaged data center space in this rapidly growing market where we continue to see great interest from clients. These benefits address all of the equipment that we expect our clients to include in a new data hall, underscoring our focus on lowering the total cost of ownership.”
STACK’s Chicago data center currently offers 13MW of critical power with 221,000 square feet of data center space to meet clients’ evolving needs and growth trajectories. Recently, STACK announced expansion plans for this campus, revealing a new adjacent multi-story facility that will offer at least 24MW of additional critical capacity.
STACK provides its data center solutions in seven U.S. markets today including Atlanta, Georgia; Chicago, Illinois; Dallas/Fort Worth, Texas; New Albany, Ohio; Northern Virginia; Portland, Oregon; and Silicon Valley, California.