Good news! Our Minneapolis data center, MSP3, officially qualifies for Minnesota’s data center tax incentive program after being certified by the Department of Employment and Economic Development (DEED). MSP3 is the latest DataBank data center to quality, joining our MSP2 facility.
The data center sales tax program has been designed with companies like DataBank in mind as Minnesota continues to attract technology and business investments. This program provides meaningful incentives for business and revenue growth while also helping to foster a technical workforce in the state.
This incentive program can be a significant financial advantage for DataBank clients in Minnesota. It offers sales tax rebates on purchased equipment, software, and even electrical utilities for data center clients and tenants.
The sales tax exemption applies to:
- Enterprise IT equipment
- Software
More specific examples include:
- Computing, networking, and data storage equipment such as computers, servers, and routers. This also includes hardware installation and maintenance agreements.
- Rack systems, trays, and cables.
- Software that is used in the data center, including installation and maintenance agreements.
Thanks to this program, DataBank clients can achieve substantial savings related to the significant investments required to set up and maintain IT infrastructure in colocation data centers.
How to Apply
MSP3 has been certified by DEED so any DataBank clients in this data center officially quality. When you purchase qualifying equipment or software, you must first pay the sales and use tax and then request a refund.
To officially request the refund, companies must complete Form ST11, Sales and Use Tax Refund Request All of this information can be found on the Minnesota Department of Revenue’s Qualified Data Centers Sales Tax Exemption website.
A Closer Look at MSP3
Our MSP3 data center serves the growing needs of financial, manufacturing, and healthcare organizations in the Minneapolis area. Set in a 14-acre campus in Brooklyn Park, MSP3 has more than 82,000 raised square feet and is served by two 4.5MW feeds from the Xcel Energy substation. This data center opened in 2021 and is the ideal colocation option for compute-intensive workloads used by hyperscalers, content delivery networks, and Fortune 100 companies.
To learn more about our Minneapolis data center, or any of our colocation facilities across the country, please visit our data center page.
