Companies that build or refurbish data centers in Minneapolis may qualify for a sales tax exemption for 20 years on IT equipment, software, and electricity used to operate the data centers. The exemption applies to facility owners as well as colocation tenants in certified facilities. At the current MN state sales tax rate, the impact of tax incentives expressed as data center deployment savings can be 19% or more. Minneapolis tax incentives are among the most generous of all data center markets.
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