RagingWire Data Centers plans to invest $150 million to expand its Data Center facility in Ashburn, Virginia, creating 50 new jobs over the next five years.
The company signed a memorandum of understanding with Virginia Economic Development Partnership making it eligible for a Virginia sales tax exemption on the purchase of computer equipment and other related data center infrastructure components.
Our agreement with the Virginia Economic Development Partnership strengthens our commitment to the local business community and encourages companies looking for data center space and colocation in Virginia to consider the many benefits of choosing RagingWire," said Mark Morrow, chief financial officer at RagingWire. "Equally as important are the tangible financial benefits that our customers gain from this agreement, as it promotes their growth from within our facility."
Last year the firm opened its 150,000 square foot data center in Ashburn. It then acquired 78 additional acres for its data center expansion. RagingWire's Ashburn data center customers can benefit from this expansion by applying for the Virginia sales tax exemption on expensive infrastructure items such as; servers, routers, generators and chillers.
Gov. Bob McDonnell said that the data center sales and use tax exemption program enhances the state’s business friendly reputation and Ashburn’s reputation as “data center alley.”
"Virginia has earned a reputation as one of the most business friendly states in the country and our Sales and Use Tax Exemption Program for Data Centers enhances that position," said Gov. McDonnell. "We commend RagingWire and its customers for 'putting Virginia to work' by utilizing this important incentive that creates good jobs for our citizens."
In addition to tax incentives for RagingWire's Virginia data center, the company's California data center in Sacramento is located in an Enterprise Tax Zone, as defined by the California Trade and Commerce agency. The Sacramento Enterprise Tax Zone designation allows RagingWire and its tenants to take advantage of a variety of incentives: hiring credits, sales/use tax credits, business expense deductions for depreciable equipment, 15-year net loss carryovers, net interest deductions for lenders, and state contract bid preferences.