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$43m tax-break for Google to house data centre in Ohio

12 Dec 2018
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There could soon be another hyperscaler on the horizon as the Ohio Tax Credit Authority has laid the bait for Google.

Under the pseudonym of Montauk Innovations LLC, Google was able to negotiate a deal with the Ohio Tax Credit Authority that involves a 100 percent, 15-year data center sales tax exemption with the added option to renew it for up to 40 years through October 30 2058.

In total, this arrangement is thought to be worth around US$43 million over the duration of the tax credit, certainly a satisfactory break for one of world’s data centre superpowers.

"Providing support to this project will help ensure Ohio’s business environment is competitive for this project and add to Ohio’s data center industry," the Ohio Tax Credit Authority stated.

The Authority is confident in the tax-break as it expects the new data centre will produce around $2.5 million in payroll.

In addition to the tax-break – and perhaps belying the area’s eagerness – New Albany City Council members got together this week to vote in favour of the project, with New Albany Mayor Sloan Spalding highlighting the city welcomes and supports the investment from Google.

If the deal goes ahead, Google will be establishing the new data centre at the New Albany International business Park in the Oak Grove II Community Reinvestment Area.

It is expected to extend over 275,000 square feet, and a legislative report for New Albany City Council members reveals it is predicted to create 50 permanent jobs by the end of 2023.

"Google is considering acquisition of a property in New Albany, OH, and while we do not have a confirmed timeline for development for the site, we want to ensure that we have the option to further grow should our business demand it," Google spokesperson Charlotte Smith said in an emailed statement to Columbus Business First.

For over 12 months Ohio governor John Kasich has been seeking to sway Google into committing investment into the region. In October last year he attended a media scrum with JobsOhio President and Chief Investment Officer John Minor.

"I told them, we've got Amazon, we've got Facebook, we've got IBM Data Analytics, all we're missing is Google. I think we're going to see movement on that front as well,” Kasich said at the time.

Amazon launched three new Ohio data centers back in 2016, while Facebook is in the midst of building its $750 million data center in New Albany.