Already Third in Nation for Capacity, Chicago Poised to Grow

Despite being third in the nation for data center capacity, Chicago has always had something of a problem realizing its full potential as a data center powerhouse. That is until now. Historically suffering from unfavorable tax laws, the Midwestern city has nonetheless kept pace with regions such as Northern Virginia and Dallas-Fort Worth in terms of megawatts. Now, a new set of tax breaks is poised to help propel Chicago to new heights and keep existing data center operators from looking to greener pastures in other states. 

The statewide measure to encourage new growth in the technology sector passed in early June as part of the state’s $45 billion capital spending plan, the Real Deal reports. The new laws give data center operators and occupants an exemption from sales taxes on IT equipment, including servers, racks, cooling gear and more. And, with the amount of refreshing that goes on in data centers, this is a very, very big deal, indeed. 

According to the Chicago Tribune, operators must have at least $250 million invested in the facility and employ at least 20 full-time employees. There are other qualifications for the tax break, but this is excellent news for the more than 31,000 Illinois residents who work in the data center industry as well as any hyperscale players looking to get into the Chicago market. 

The measure is expected to lure new business to the Windy City while discouraging existing data centers from moving elsewhere when it’s time for a refresh. Prior to the passage of the new tax incentives, Chicago was in danger of falling out of third place in capacity due to the cost of doing business in the state. 


Relocation on your mind? 

Whether you’re looking to relocate to Chicago or anywhere else in the world, there are some important signs that will let you know when it’s time to pull the trigger. Among them: 

  • You’re looking for increased power or cooling capacity
  • Consolidation is on your radar
  • Security has become a major concern
  • You’re being outpriced in your region
  • You’re looking for a higher Service Level Agreement (SLA)
  • It’s time for increased connectivity
  • You simply need more space

Whatever the case, relocation is a massive undertaking and you need a team of experienced and qualified professionals to ensure a successful move from start to finish. Instor’s team will help take charge of every facet of your next move, positioning you for ultimate success. Want to learn more? Get in touch with us today.