SAN FRANCISCO, – Digital Realty Trust, Inc., a leading global provider of data center solutions, today announced its strong support of the recently passed tax incentive legislation that was created to advance data center development opportunities in Arizona.
The legislation allows data center owner/operators and qualified tenants to receive an exemption for sales and use taxes attributable to data center equipment purchased for use in a qualified data center. To qualify a data center, an owner/operator must initiate new investment in the state of at least $50 million for urban locations and $25 million for non-urban locations.
Upon certification, owner/operators and qualified tenants can benefit from the tax exemption for 10 years. Additional features include benefits for existing owner/operators that have created investment in the state over the past six years equal to $250 million or more. Also unique is this legislation’s focus on sustainable redevelopment; if an owner/operator seeks to redevelop and repurpose a vacant structure or seeks to redevelop an existing structure using sustainable development practices, the project can qualify for an enhanced tax benefit period of 20 years.
“Arizona’s accomplishment here should be applauded and we are proud to have played a material role in getting this done for the benefit of the state, the data center industry and, most importantly, our current and future customers in the area,” said David Caron, Senior Vice President, Portfolio Management at Digital Realty.
Over the past year, Digital Realty has worked with community, business and industry leaders to create a framework for the legislation so that it would meet the needs of all parties involved. In 2012, the company founded the Arizona Data Center Coalition, a diverse group of wholesale data center and colocation facility owner/operators, local utility providers, brokers, economic development professionals and others, to publicly advocate for continuing improvements to legislation to place and keep Arizona in the top tier of states to host data centers. For more information about the Arizona Data Center Coalition, visit www.arizonadatacentercoalition.org.
“We are pleased to see this legislation pass and excited about the benefits it will afford our local customers,” said Michael F. Foust, Chief Executive Officer of Digital Realty. “And we are gratified that our dedication of time and resources has helped to produce legislation that will meet the unique needs of the data center industry as well as the economic development needs of the State of Arizona.”
About Digital Realty
Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer’s unique data center needs. Digital Realty’s customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty’s 122 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 22.7 million square feet as of April 26, 2013, including 2.6 million square feet of space held for development. Digital Realty’s portfolio is located in 32 markets throughout North America, Europe, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty’s website at http://www.digitalrealty.com.