CoreSite has filed a civil suit against Fairfax County in Virginia regarding its Reston data center.
The colocation provider is arguing that Fairfax County has overstepped by asking for a list of tenants in CoreSite's four data centers and office building in Reston, reports the Washington Business Journal.
According to the suit which was filed on March 8, Fairfax's tax department has repeatedly asked for the identity of the tenants at 12100 Sunrise Valley Drive and their contact information.
The county is sourcing a Code of Virginia provision that states that tax commissioners can require taxpayers to "furnish information relating to tangible or intangible personal property, income or license taxes of any and all taxpayers” so as to make a full assessment of tax liabilities.
However, the letters included in CoreSite's filing do not identify how the information about CoreSite's tenants, of which the company claims to have around 300, would be used.
One letter says that CoreSite is "subject to criminal penalties" if it withholds information, and each day's refusal will count as a new offense.
CoreSite is asking to be relieved from having to "comply with such demands" and that "no penalties or adverse action be taken by the county against CoreSite" until a decision is made.
The company argues that not all of its tenants are county or state taxpayers, and it isn't the company's place to know that information about the tenants, adding that some of its contracts also require confidentiality. Blanket disclosure could expose CoreSite to legal action from its tenants.
A letter from CoreSite's lawyers said county requests “must by nature be reasonably specific, seek only information related to Virginia taxpayers, and not require unduly burdensome efforts for taxpayers to respond.”
According to BJ, CoreSite and its lawyers did not respond to a request for comment, while the county government declined to do so. No response has yet been given to the suit in court.
CoreSite was acquired by American Tower Corp in 2021. The company has more than 27 data centers in operation or development across 11 US markets. In December 2023, the company shared that it would be expanding its data center footprints in Secaucus, New Jersey, and Colorado, Denver.