State of Missouri Incentivizes Data Center Construction and Expansion

On April 14, 2015, Missouri Governor Jay Nixon signed SB 149 into law, providing incentives for those constructing or expanding certain data centers within the State of Missouri. The law provides exemptions from certain sales and use taxes for each of the following used in a data center:

  • Electricity, gas, water, and other utilities
  • Telecommunication services and Internet services
  • Machinery, equipment, and computers
  • Certain materials and other personal property used to construct or expand (as the case might be) that data center

The law requires that a certain amount of money must be invested into the data center within a certain period of time and that the data center project must result in the creation of a certain number of jobs. For those jobs, the average wage paid must be no less than 150% of the applicable county average wage.

For new data centers, the incentives are available for up to 15 years from the date of the Department of Economic Development's conditional approval, and the commencement of that period may be delayed for up to two years at the election of the taxpayer. For expanding data centers, the incentives are available for up to 10 years (with a similar option to extend).

Those seeking the benefit of the incentives are required to submit a notice of intent and a project plan to the Missouri Department of Economic Development for review and certification.

The incentives arising from the new law combine with low utility costs, suitable climate and topography, and strong connectivity to make Missouri an attractive jurisdiction within which to consider locating a new or expanded data center.

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