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Washington State Approves Tax Incentive Bill For Rural Development Of High-tech Data Centers
Governor Christine Gregoire has recently signed a new law that provides tax incentives to encourage companies to build data centers in rural areas of Washington State
Last year, the state rejected a proposed tax break, which prompted Microsoft to move its cloud computing platform Azure out of Washington state to another U.S. data center. The news was distressing to the town of Quincy, where Yahoo, Microsoft and Intuit have built large server farms, drawn to Grant County's cheap and green hydropower.
Since then, Facebook and Amazon.com have both chosen to build data centers in Oregon instead of Washington, said Patrick Boss, director of economic & business development for the Port of Quincy.
The new tax exemption applies to:
• Sales of server equipment that will be installed in a data center.
• Labor and service charges for installing servers, and to sales of power infrastructure equipment.
• Sales of power infrastructure.
• Labor and services for construction of power infrastructure.
To be eligible for the break, data centers have to be at least 100,000 square feet to qualify and construction must begin between March 31. 2010, and July 1, 2011.
""The legislative activity has definitely stimulated interest....we’
Sabey Corp. has also announced plans to build a 525,000-square-
Prior to the Governor's signing of the data center tax incentive bill, the state Senate passed it by a 39-4 vote, and the house passed it by a 91-2 vote earlier this month.