New York Data Center Sees Tax Incentives

Green House Data announced in September that the company will be leasing approximately 20,000 square feet of space in an Orangeburg, New York data center, and is looking for tax incentives to help fund the project.

The long-term agreement reached by Green House and Ramland Holdings LLC, the facility’s owner, initiates the start of a full redevelopment of the New York data center campus. The 232,000 square foot building will provide approximately 2MW of power with enough density to support 10kw cabinets. The Tier III facility is planned to become the East Coast flagship data center for Green House.

Ramland Holdings is planning a complete overhaul of the New York data center in an attempt to create a facility that is capable of hosting multiple tenants. The company is hoping to receive $2.5 million data center tax incentives from the state, as well as the rights to negotiate an agreement for payment in place of taxes with Orangetown and the South Orangetown school district.

In a letter to the Rockland County Industrial Development Agency, managing director for Ramland Holdings Corey Welp wrote that, although the facility’s location benefited from sufficient power supply and proximity to New York City, it does not have an adequate connection to a fiber optic network infrastructure. According to Welp, the data center will need a near $30 million investment to be able to attract tenants and compete with similar New Jersey data center campuses.

Welp requested the IDA continue to offer sales tax exemptions to all of the data center’s future tenants, but according to IDA executive director Steven Porath, each client’s tax exempt status will be evaluated individually.

The potential for Rockland County to attract a growing number of data centers has increased with the creation of the Orange and Rockland Utilities’ electric substation, but the possibility of data center tax incentives will help attract customers dramatically.