Local officials in a Colorado city have approved tax-incentive packages for data center construction projects by the large retailer Wal-Mart and scientific instrument maker Agilent, expecting both projects to create positive economic impact on the community that is much larger than the income lost through tax exemptions and rebates committed to.

Colorado Springs City Council passed a US$6m incentive package for Wal-Mart’s future 163,000-sq-ft data center, according to a report by the Colorado Springs Independent. The package consists of both personal-property tax exemptions, and sales and use-tax rebates.

Wal-Mart plans to invest $100m into the construction project, the local news service reports. The company expects to expand the facility to 206,000 sq ft in five years.

Agilent’s project, which includes a 20,000-sq-ft data center and a 35,000-sq-ft technology center, received a $4.4m incentive package. The company plans to spend $121m over 15 years.

Construction on both sites is expected to commence sometime in the June-August timeframe.

In addition to city tax breaks, the state, El Paso County and a local school district are expected to provide more incentives for the two projects.

Officials are expecting their investment to create $1bn in local economic impact over the next 15 years.

The Independent quoted county commissioner Sallie Clark, who said during the Council meeting, "Eight hundred thousand dollars for $175 million – that’s a pretty good return on investment."

She was referring to the $800,000 incentive package Wal-Mart was slated to receive from the county and the tax revenue the project was expected to push into county coffers.