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Wednesday, 23 December 2015 16:29

Snyder signs data center legislation

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Gov. Rick Snyder today signed legislation exempting co-located data centers from state sales and use tax, paving the way for the largest data center east of the Mississippi River to locate on a site south of Grand Rapids.

Las Vegas-based Switch Communications Group LLC said it will locate on the site of the former Steelcase Pyramid facility in Gaines Township. A spokesman confirmed that Switch will still occupy the site.

[RELATED: Las Vegas tech firm asks legislators to change Michigan tax law to benefit data center industry]

“Michigan has a long tradition of innovation and talent, and is quickly becoming known as an ideal place for high-tech jobs and growth of the emerging technology industry,” Snyder said in a statement. “It’s imperative that our tax policies continually develop and evolve to meet the needs of the jobs of tomorrow. The world constantly changes in how we make things, and we need to adapt and ensure we remain a state that continually draws on innovative commerce and new opportunities for Michiganders.”

The governor’s spokesperson, David Murray, told MiBiz the legislation could also have positive implications for the automotive industry in Michigan.

Previously, Switch said that, along with its customers, it would create 1,000 jobs at the site, but only if the state changed its tax policy, bringing it in line with 17 other states in the country.

The tax cuts also apply to approximately 40 other data centers in Michigan.

Editor's Note: This story has been updated with comment from Snyder's spokesperson.

Read 1602 times Last modified on Monday, 28 December 2015 10:25

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