Enterprise colocation customers now have access to direct benefits under Minnesota’s sales tax incentive program. Cologix has announced that its new 28K SQF MIN3 data center has qualified for the Minnesota’s Department of Employment and Economic Development’s (DEED) sales tax incentive program, which offers tax rebates for certain new data centers and their end customers. Cologix’s qualification for the program is unique for enterprise customers because it is the only certified data center that combines a focus on multi-tenant retail colocation with a downtown Minneapolis location.

“Minnesota enterprises are increasingly responding to the benefits of the colocation model to support their IT needs, especially where data centers are close to home, highly connected and highly redundant. We designed our new data center with these customers in mind,” explains Mike Hemphill, general manager, Cologix Minneapolis. “These customers are regularly spending $50 to $100K per cabinet or to refresh legacy equipment with new servers and switches. Now, with access to the tax program, these customers can reap the benefits of colocation and save up to the equivalent of 25% to 30% of their contracted service fees.”

Cologix has been the largest tenant at Minneapolis’s carrier hotel, operating ~25K SQF of data center space and the Meet-Me-Room in the 511 Building (511 11th Avenue South), connecting enterprises to over 70+ network service providers. In 2014, Cologix announced plans for a new 28K SQF data center in the 511 Building which is set to open in Q1, 2015. “Cologix is pleased to partner with the Minnesota DEED as we bring our new data center to market,” states Grant van Rooyen, chief executive officer, Cologix. “Cologix has been Minnesota’s leading neutral colocation provider for years. We are gratified that our commitment to investing in the market has been supported by DEED’s innovative program."

“The Data Center Sales Tax Program was meant to assist companies like Cologix expand in Minnesota, and to add high-quality, high-wage IT jobs to the state’s workforce,” said DEED Commissioner Katie Clark Sieben. “Nationally, this program has helped rank Minnesota as a top data-center market, and we are seeing an increase in demand in the last year.”