PHOENIX, ARIZONA
In addition to having the fastest-growing population in the United States between 2010 and 2020 and being the country’s sixth youngest city, the Phoenix metropolitan area has become one of the hottest technology and big data hubs in the Western United States. Its population growth between 2020 and 2030 is expected to double the national average during the decade, making it highly attractive to host cloud computing infrastructure. Home to Microsoft and Oracle data centers and many of the top colocation providers, the tech scene in Phoenix is anchored by Intel, Boeing, and Honeywell with cumulative investments of several billion dollars. While water usage and conservation continue to be a concern, Arizona uses less water today than it did in 1957 with more than 3 trillion gallons of water stored for future use. Greater Phoenix also boasts a fiber-optic network spanning 1,800+ route miles across more than a dozen cities.
Taxes & Incentives
The Arizona Computer Data Center (CDC) program provides Transaction Privilege Tax (TPT) and Use Tax exemptions at the state, county, and local levels on qualifying purchases of CDC equipment. In general, an owner, operator or qualified colocation tenant of a certified CDC can obtain the tax exemptions provided by the Program for up to ten years. For sustainable redevelopment projects, tax exemptions are available for up to 20 years. A certified CDC owner, operator and/or qualified colocation tenant(s) collectively must satisfy the applicable capital investment threshold. If the CDC is in Maricopa or Pima County, a capital investment of at least $50 million must be made within five years of the date of the CDC’s certification. In other areas, the minimum qualifying investment threshold is $25 million. Data center equipment is subject to tangible personal property taxes. Both the Arizona Commerce Authority and the Greater Phoenix Economic Council play a major role in attracting large technology investments in the Phoenix area.