Minnesota Data Center Qualifies for Data Center Tax Incentives

The new data center will add more capacity to the rapidly growing Minnesota data center area.

Cologix's new Minnesota data center has qualified for a new Minnesota sales data center tax incentive program this January. This latest introduction to the Minnesota data center market is a 28,000 square foot dubbed MIN3 data center.

The data center tax incentive program offers tax brakes on software, cooling and power equipment, energy use and IT implements for 20 years, as long as the facility is at least 25,000 square feet and the company invests at least $30 million.

"Minnesota enterprises are increasingly responding to the benefits of the colocation model to support their IT needs, especially where data centers are close to home, highly connected and highly redundant. We designed our new data center with these customers in mind," Mike Hemphil, Minnesota general manager at Cologix, said.

The center is in downtown Minneapolis in a carrier hotel known as the 511 building. Because Cologix operates the Meet-Me room in the building, putting a new data center in there was a natural choice.

The development of this data center real estate comes on the heels of many other recent investments in the area, including those by Compass Datacenters, a Dallas-based developer.

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