(WEB HOST INDUSTRY REVIEW) — Two bills with bipartisan support have been introduced in the Washington Legislature that could potentially jump-start data center construction activity in the state and create thousands of jobs.
The bills, SB 6789 : and HB 3147 :, would give companies a 15-month sales-tax break when they buy and install computers and energy for new data centers in rural counties.
The state Department of Revenue requested the introduction of the bill, which are sponsored from both political parties and all parts of the state, as well as supported by the Washington Needs Jobs (www.washingtonneedsjobs.com) coalition.
Up until November 2007, when the State Attorney General deemed that data centers did not qualify for an existing rural sales-tax exemption, the state was a a hotbed of data center construction activity.
The proposed legislation would re-establish Washington as a desirable area for data center construction.
Last summer Governor Christine Gregoire introduced a bill to help data center operators secure tax discounts on their equipment but the bill was turned down, which likely influenced Microsoft to move its Azure cloud out of Washington.
“This legislation creates a window of opportunity to stimulate the economy in the short term with hundreds of badly needed construction jobs in Eastern Washington and, by restarting data center development in this state, to generate long-term high tech jobs and spur additional technology investment,” said Rep. Timm Ormsby, D-Spokane, the lead sponsor of HB 3147.
Data centers usually create up to 500 or more construction jobs, in addition to the 30 to 50 permanent operating jobs to support the facility and its employees.
In addition to jobs, the data centers provide other economic benefits to surrounding communities, especially in the rural areas of the state.
A recent study by Washington Research Council shows that several data centers built in Central Washington before the tax climate changed brought $1.17 billion to the economies of Douglas, Grant and Chelan counties, including new jobs and tax revenue.
No related posts.
