T5 Data Centers gets tax exemption for new project

T5 data centers

T5 Data Centers said the state of North Carolina has granted tax exemption for its new build-to-suit project at the company’s King’s Mountain Data Center campus.

The tax incentive was awarded under the recently enacted HB 117, the North Carolina Competes Act, which grants tax privileges specifically to data centers, and will provide tax exemption for both data center construction and operations.

Under the tax exemption umbrella, T5 Data Centers is exempt from paying sales or use taxes on major equipment and supporting infrastructure during construction of the new build-to-suit data center.

Moreover, T5 Data Centers and its new customer will be exempt from taxes related to data hall IT deployments and facility operations, which includes expenses for servers, hardware, equipment, and taxes on electricity.

“With the new data center tax incentives, North Carolina becomes an even better location for companies seeking to build a high-performance data center facility,” said Robbie Sovie, Vice President of Construction Services.

“The tax savings during the construction phase are substantial, and our customers are already talking about reallocating those tax savings to assist with continued investment in the Kings Mountain data center.”

To qualify for the tax exemption, a cumulative anticipated investment of $75 million has to be made in the King’s Mountain Data Center over five years.

Arya MM

[email protected]

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