Data center legislation bolsters colocation solutions

March 31, 2015

More and more data centers are popping up throughout the country to keep pace with the surging demand for cloud storage capacity. As a result, colocation solutions have emerged as a suitable option for enterprises and cloud service providers that would like to expand their operations but lack the funds to boost their infrastructures.

A nationwide push from legislators indicates that political entities are supporting the proliferation of data centers. Tax breaks and incentives have already encouraged enterprises throughout the country to consider increasing their use of the cloud and other workplace technologies.

Central Oregon helps tech sector with tax breaks
According to The Bulletin, officials in central Oregon said that a bill recently passed the state’s House that would provide $8 million worth of tax breaks for major tech companies in the area.

Crook County Judge Mike McCabe noted that Facebook and Apple, both with facilities in tax-friendly Prineville, Oregon, will soon expand their storage capacity in the region. The legislation could help push that process forward.

“By passing this bill today, we’ve secured family wage jobs at high tech data centers in rural parts of the state while opening the door for Oregon to become a national leader in technology and communications infrastructure,” House Republican Leader Mike McLane, (R-Powell Butte, Oregon), told the news outlet.

Missouri legislators support data center growth
The St. Louis Business Journal reported that legislators in Missouri recently approved a bill that would provide tax breaks for data center operations.

The bill would require each data center owner to invest a minimum of $5 million in expansion efforts and create five new jobs. A new data center would require a $25 million investment and at least 10 new jobs.

“This is a growing industry that is creating exactly the kind of jobs we want in Missouri,” Daniel Mehan, the president and CEO of the Missouri Chamber of Commerce and Industry, told the publication. “We thank the leadership of both the House and the Senate for making this bill a priority and moving it forward prior to spring break. Now we ask the governor to do his part and sign this bill to help bring good jobs to Missouri.”

The benefits of colocation
The encouraging progress of data center legislation will open up opportunities for colocation providers. The concept is appealing to tech-savvy businesses that want to expand their data center despite budgetary constraints. It also serves as a good option for those that would like to expand to a new region without building another data center, or those that seek the performance of a top-notch system without the responsibilities of ownership.