The state of Arizona has extended its data center tax break incentives for another 10 years.

Republican state Governor Doug Ducey signed the bill, H.B. 2649 Computer data centers; tax incentives, into law last week.

In order to qualify for tax breaks in the state, data center operators must invest $25 million if the data center is built within a county with a population of 800,000 or fewer, and $50 million if in a county with a larger population. The bill maintains these requirements for an additional 10 years through to 2033.

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More tax breaks for data centers

Arizona desert cactus monument valley
– Thinkstock / jenifoto

As well as extending the state’s current tax incentives, the bill expands the tax exemptions to include the ‘Use, Installation, Assembly, Repair Or Maintenance’ of data center equipment, as opposed to just the sale of such equipment.

The bill also requires companies to submit extra information around investments and make greater investments into renewable energy to qualify for ‘utility relief.'

The bill was introduced by Republican Representative Ben Toma alongside fellow Republicans David L. Cook, Tim Dunn, and Joanne Osborne.

Arizona first enacted data center incentives in 2013, and a number of states now offer tax breaks to data center firms in order to attract investment. Connecticut recently passed new incentives, while Virginia has extended its tax breaks further to encourage more investment outside of the traditional hub of Northern Virginia.

A similar bill passed the Senate in Kentucky but was vetoed by Democratic state Governor Andy Beshear due to its ‘rushed nature’ and the lack of language around denying tax breaks to any projects that were “certain to fail.”