Missouri will have a strong tool for luring one of the fastest growing industries to our state if Gov. Nixon signs Senate Bill 584 into law. On the final day of the 2014 Legislative Session, lawmakers gave final approval to an omnibus bill that contained a provision to exempt from sales tax resources or equipment used or consumed in the production or facilitation of a data center, including utilities and electricity.
That provision will give Missouri a significant boost above other states wooing data centers and server farms. A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems.
“Companies are investing billions of dollars right now to build and establish data centers as the demand for storage of electronic data continues to grow exponentially,” said Dan Mehan, Missouri Chamber president and CEO.
Missouri is an ideal location for data centers because it is situated in a geographically low-risk location from natural disasters. Missouri boasts more than 15 million square feet of subterranean sites carved out of former limestone quarries, providing climate control, enhanced security and reduced vulnerability. The states central location and abundant, cost-effective power also makes Missouri a prime location for these facilities.
“Missouri has taken a back seat, however, to other states that have implemented aggressive tax policy to recruit data centers to build there,” Mehan said. “This legislation could be a game changer for this business sector.”
The legislation is sponsored by Sen. Bob Dixon, a Republican from Springfield.
For more information on tax issues, contact Tracy King, Missouri Chamber vice president of governmental affairs, at email@example.com, or by phone at 573-634-3511.