CyrusOne Data Centers in Northern Virginia Qualify for Tax Incentives
DALLAS–(BUSINESS WIRE)–CyrusOne Inc. (NASDAQ: CONE), a leading global real estate investment trust (REIT) has qualified for tax incentives in Loudoun County, exempting customers from sales tax payments on all equipment deployed in our data centers located in that county.
“We have been working to secure this tax incentive for our customers for the past 5 years, which will significantly lower our customers’ expense burden,” said Erik Leban, vice president of tax at CyrusOne. “For a typical 10-megawatt hyperscale deployment, we estimate that our cloud customers could expect to save up to nearly $50 million in taxes over the life of their contract or roughly $20 per kilowatt per month. We are one of the few companies that have qualified for the exemption as we have invested nearly $1 billion constructing one of the largest data center deployments in Loudoun County. This is a continuation of the diligent tax work we have done on behalf of our customers petitioning for favorable tax legislation in Arizona, Illinois, Georgia, and Texas.”
While customers typically look to minimize lease and power costs, taxes often get overlooked and can make up a significant hidden cost. The tax incentive dramatically decreases the cost of deploying computer and network equipment in our facilities, allowing CyrusOne to focus on lowering customers’ total cost of ownership. With more than 70% of the world’s internet traffic passing through Loudoun County’s digital infrastructure, there is also a unique opportunity for retroactive tax refunds from expenses dating back to 2014.
CyrusOne (NASDAQ: CONE) is a high-growth real estate investment trust (REIT) specializing in highly reliable enterprise-class, carrier-neutral data center properties. The Company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for approximately 1,000 customers, including more than 200 Fortune 1000 companies. With a track record of meeting and surpassing the aggressive speed-to-market demands of hyperscale cloud providers, as well as the expanding IT infrastructure requirements of the enterprise, CyrusOne provides the flexibility, reliability, security, and connectivity that foster business growth. CyrusOne offers a tailored, customer service-focused platform and is committed to full transparency in communication, management, and service delivery throughout its nearly 50 data centers worldwide. Additional information about CyrusOne can be found at www.cyrusone.com.
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David M. Baum