DuPont Fabros Technology wins exemption from state sales tax on the equipment purchases.
- September 16, 2012
Data center company DuPont Fabros Technology Inc. (DFT) has made a deal with the state that will exempt the company and its tenants paying from sales tax on new computer equipment.
DFT’s memorandum of understanding with the Virginia Economic Development Partnership applies to tenants of the company’s data-center facilities on its Ashburn campus.
To obtain the exemption, DFT and the tenants committed to invest $150 million and create at least 50 qualifying jobs by June 30, 2016 at the Ashburn campus.
The exemption, effective from July 1, 2012 to June 30, 2020, applies to purchases of servers and other qualified equipment that are the heart of a data center operation.
“The significant sales tax relief that DFT and its tenants will receive lowers the total cost to our tenants of operating their data centers within DFT facilities located on our Ashburn Corporate Center,” Hossein Fateh, the company’s president and CEO, said in a statement.
“This sales tax exemption is critical to the growing data center industry,” Gov. Bob McDonnell said in a statement. “It provides an additional tool to help attract new business, and supports the growth of wholesale and retail data center facilities in Virginia.”
DFT is a major owner, developer, operator and manager of large multi-tenanted wholesale data centers. The company’s 10 data centers are located in four major U.S. markets.