Phoenix Data Center – a Possible Microsoft Expansion?

A new Phoenix data center may be in the cards for Microsoft Recently, Arizona legislator Jeff Dial said that the company was asking for changes to data center tax breaks established in 2013.

Reportedly, Microsoft is eyeing a 575,000 square foot site on Union Hills Drive near Interstate 17.

Arizona passed data center tax incentives in 2013, and Microsoft participated in the negotiation process. It is likely that Microsoft is seeking greater tax breaks to reduce its operating costs there. Currently, there is an exemption in sales and use taxes for data center equipment in the state.

These breaks, designed to reduce the financial strain of taxes on new data center equipment and installation in the region, were instituted just recently. However, Microsoft appears to be holding out for a better deal and advocating for adjustments to the current set of tax breaks.

Phoenix has had several data centers open up in recent years, including centers from CyrusOne and Carter Validus.

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