Tax Exemption Aims to Lure Cloud Data Storage to Indiana

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Tax Exemption Aims to Lure Cloud Data Storage to Indiana

State hopes luring data centers will bring data-dependent businesses in their wake

(VALPARAISO, Ind.) - Indiana wants a piece of the cloud.

Cloud data storage is actually down to earth, and to save critical data instantly, those storage facilities have to be relatively close by. Indiana has made equipment for those data centers exempt from sales tax, as long as they invest at least $25 million. Legislators have also given cities permission to offer property tax breaks to data centers. Those breaks had been available only in special high-tech districts.

Valparaiso Representative Ed Soliday boasts the change instantly makes Indiana one of the top five states for those facilities. He says the rapid turnover of equipment at data centers makes a sales tax exemption an exceptionally powerful incentive, and allows Indiana to capitalize on its central location. He says the state is already in talks with at least three companies about locating data centers in Indiana.

Construction of data facilities can approach or surpass a billion dollars, but Soliday says the real potential is in the businesses that will locate nearby.

The tax exemption is retroactive to the start of the year.

(Photo: Stefan Irvine/LightRocket via Getty Images)

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