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Rackspace data centre promises economic boost for Reno in exchange for tax abatements

Fri 18 Sep 2015

Reno Technology Park

San Antonio-based cloud giant Rackspace has placed an incentive application with local governors for the proposed launch of a new data centre site in the Reno Technology Park, Nevada, neighbouring Apple’s existing facility.

The company is in discussion with the Nevada Governor’s Office of Economic Development, pledging to create at least 50 positions at the centre with an average hourly salary of $29.75 (approx. £19), in exchange for 20 years of tax abatements under the Nevada Tax Incentive Program.

Rackspace has applied for two schemes: a 2% sales tax abatement on data centre equipment and a 75% personal property tax break over the next two decades.

The building is expected to cover over 150,000 sq. foot, with construction costs amounting to around $100mn. A further $211mn will be invested in personal property, with a total investment of $422mn (£270mn) to be channelled into the Reno project over the next 20 years.

The cloud experts are projecting an economic impact of $323.4mn in the community, with a wider knock-on effect in local businesses.

Rackspace currently serves over 205,000 customers around the world with locations across the U.S., Australia, the UK, The Netherlands, India, Hong Kong, Switzerland and Israel. Its managed services offering includes delivering a range of solutions including public, private, dedicated and hybrid cloud infrastructure packages. The organisation, alongside NASA, also co-created the fastest-growing open cloud platform and developer community in the world, OpenStack.

According to a letter addressed to the governor’s office penned by Rackspace chief operating officer Mark Roenigk, the cloud company was particularly interested in adding Reno to its portfolio because of its lower power costs, the available economic incentives, access to a skilled workforce and its strong connectivity to the Bay Area and the West Coast.

The Northern Nevada data centre is expected to open its doors in June 2017. Rackspace has also proposed that the Reno site will be completely powered by renewable energies by 2026.

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