Ohio Data Center Tax Incentives Sought By Amazon Affiliate

Amazon’s data center affiliate Vadata was approved for two tax credits in August worth more than $80 million by the Ohio Tax Credit Authority to locate a facility in the state.

The approved data center tax incentives are both 15-year deals, one for a 100 percent sales tax exemption for the Ohio data center and the other for a 75 percent state income tax credit. The latter is estimated to generate approximately $4 million in savings for Vadata. The proposed facility will create around 120 jobs and include an overall investment of more than $1 billion.

“The proposed project involves constructing new data centers to provide cloud computing services,” state officials said in a statement. “The company’s fixed-asset investment would be towards constructing a new building, on- and off-site infrastructure improvements, road construction, and new machinery/equipment.”

An exact location for the facility has not yet been determined, but the company is targeting Central Ohio for the site. The state has proven itself to be a major destination for data center construction in recent years. Vadata was one of nine projects to receive data center tax incentives from the Ohio Tax Credit Authority, including ones from Dole Fresh Vegetables and Standard Technologies. IBM also chose to make a home in the state, announcing plans for an Client Center for Advanced Analytics in 2012.